Use this interactive sales commission plan to make tiered rate commission plans fast to create and easy to understand.
A sales commission plan is a document that outlines how a sales individual is compensated based on their sales performance. It is a way to motivate and reward salespeople for their impact on growing the business. When designing a commission plan, it is important to align it with your company's overall compensation philosophy and strategy. It is also important for a sales team to understand how their compensation works to to foster a high-performing sales team.
A tiered rate plan is where the commission rates vary based on different levels of quota or target attainment. As a sales individual achieves higher levels of goal attainment, their commission payout rates increase. For example, a tiered rate structure might look something like this: