CRO · Calculator · Advanced · Saves 40+ hours
Commission Structure Designer
A tool for designing sales commission structures that align incentives with company goals.
What's included
- Commission structure types
- Component design (base, variable, accelerators)
- Scenario modeling
- Cost projection
- Comparison to benchmarks
- Legal and compliance considerations
Best used when
- Designing new comp plan
- Restructuring existing compensation
- Aligning incentives with strategy
- Managing commission costs
The template
The Template
COMMISSION STRUCTURE TYPES
Structure Comparison
| Structure | Description | Best For |
|---|---|---|
| Flat rate | Fixed % of revenue | Simple, transactional |
| Tiered | Increasing % at thresholds | Motivate stretch |
| Accelerated | % increases over quota | Drive overperformance |
| Decelerating | % decreases at cap | Control costs |
| Hybrid | Mix of models | Complex goals |
Standard Commission Components
COMMISSION STRUCTURE COMPONENTS
BASE SALARY:
Market rate for role: $_____
Our base salary: $_____
% of OTE: ____%
VARIABLE COMPENSATION:
Target variable: $_____
% of OTE: ____%
OTE CALCULATION:
Base + Target Variable = OTE
$_____ + $_____ = $_____
TYPICAL SPLITS BY ROLE:
AE: 50/50 to 60/40 base/variable
SDR: 60/40 to 70/30 base/variable
CSM: 70/30 to 80/20 base/variable
SE: 70/30 base/variable
COMP PLAN DESIGN
Commission Rate Calculator
COMMISSION RATE DESIGN
TARGET VARIABLE: $_____
QUOTA: $_____
BASE COMMISSION RATE:
= Target Variable ÷ Quota
= $_____ ÷ $_____
= _____%
ACCELERATORS (over 100%):
100-125% of quota: Rate × 1.5 = ____%
125-150% of quota: Rate × 2.0 = ____%
150%+ of quota: Rate × 2.5 = ____%
EXAMPLE AT $500K QUOTA:
Target variable: $100K
Base rate: $100K ÷ $500K = 20%
At 100%: $100K earned
At 125%: $100K + ($125K × 30%) = $137.5K
At 150%: $100K + ($125K × 30%) + ($125K × 40%) = $187.5K
Accelerator Design
| Attainment | Rate Multiplier | Effective Rate |
|---|---|---|
| 0-50% | 0.5x | 10% |
| 50-100% | 1.0x | 20% |
| 100-125% | 1.5x | 30% |
| 125-150% | 2.0x | 40% |
| 150%+ | 2.5x | 50% |
SCENARIO MODELING
Earnings at Various Attainment
COMMISSION SCENARIO MODEL
INPUTS:
Base salary: $80,000
Target variable: $80,000
Quota: $800,000
Base rate: 10%
SCENARIOS:
50% attainment ($400K):
Variable = $400K × 5% = $20,000
Total comp = $100,000
100% attainment ($800K):
Variable = $80,000
Total comp = $160,000
150% attainment ($1.2M):
Variable = $80K + $200K×15% + $200K×20%
Variable = $80K + $30K + $40K = $150K
Total comp = $230,000
COST PROJECTION
Commission Cost Model
| Scenario | Reps | Avg Attain | Avg Payout | Total Cost |
|---|---|---|---|---|
| Low | 80% | $ | $ | |
| Plan | 100% | $ | $ | |
| High | 120% | $ | $ |
Frequently asked questions
What is the Commission Structure Designer?
A tool for designing sales commission structures that align incentives with company goals.
Who is the Commission Structure Designer for?
It is built for CROs and their teams working on Revenue Operations. The AI coach adapts it to your company, stage, and goals.
How long does the Commission Structure Designer take to use?
It saves roughly 40+ hours versus building from scratch. Our AI coach can tailor the calculator to your situation in minutes, then hand you a step-by-step plan.
Is the Commission Structure Designer free?
Yes. You can read the full calculator and start getting coached through it for free. Sign in to save your tailored version and track your next steps.
How does the AI coach help with the Commission Structure Designer?
The coach teaches you the framework, asks a few questions about your business, tailors the calculator to you, and gives you measurable next steps to execute.