Commission is one of the most direct links between effort and pay in any job, yet the structures behind it — tiers, draws, splits, accelerators — are often poorly explained to the people earning them.
Different commission structures require different math. This guide walks through exactly how to calculate flat rate, tiered, split, and draw-based commission, with real numbers at every step.
A commission plan is supposed to motivate performance, but a surprising number of plans do the opposite — quietly discouraging exactly the behavior they were designed to encourage.
A commission plan is a behavioral tool as much as a compensation tool — every clause in it shapes what your sales team actually spends their time doing. Here's a practical framework for getting it right.