What is sales commission?
Sales commission is the variable part of a salesperson's pay, paid according to the results they achieve. It is set out in a commission plan, which defines targets, calculation rules and reward mechanisms: target pay, accelerators, clawback clauses, payment frequency.
We work on plans for salaried sales teams (reps and managers) in growing B2B companies. Commission for independent sales agents falls under a different framework, which we do not cover.
Why do commission plans break down as the company grows?
As companies grow, quota models and incentive plans often fall behind reality. Targets become unrealistic or inconsistent. Sales compensation rewards the wrong behaviours. Teams lose trust in the system, and performance stalls.
Our targets and compensation management programmes bring the plan back in line with your current revenue model.
Scaling without friction
As companies grow, quota models and incentive plans often fall behind reality. Targets become unrealistic or inconsistent. Compensation drives the wrong behaviors. Sales teams lose trust in the system, and performance stalls.
Our Targets & Compensation Management programs bring clarity and fairness — creating models that are transparent, scalable, and tied directly to business outcomes.
What Atscale builds with you?
Tools and frameworks to align variable pay with results, from plan design to payout tracking.
Compensation plans aligned with your revenue model
We design compensation plans that encourage the right behaviours and align incentives with your revenue model. From OTE structure to accelerators and clawback clauses, we build with you a compensation plan that evolves as you grow.
Data-driven sales targets
We help you set sales targets that are realistic and based on your data. With automated allocation models and clear summaries by team, segment or territory, your reps know exactly which target to aim for, and why.
Real-time attainment tracking
We put in place the systems that track quota attainment, payouts and performance in real time. With the right dashboards and workflows, you reduce calculation errors and the time managers and finance spend on them.
The components of a commission plan
Each component links individual motivation to company growth.
Each rep's target for the period
Quotas aligned with market opportunities
The allocation of accounts and potential
Models that balance potential and fairness
Target pay at 100% attainment
Frameworks that evolve with growth
Calculation rules, including accelerators above quota
Structures that encourage the right behaviours
Recovery of commissions when a customer cancels
Clear rules that teams understand
Progress tracking and change rules
Real-time transparency and adjustments without disruption
Sales incentives: align sales, marketing and customer success
A plan focused only on sales creates friction with other functions. We balance sales incentives across sales, marketing and customer success, so that each function is rewarded for what grows revenue.
This alignment starts with the go-to-market strategy and carries through into your go-to-market plan.
Models that drive performance
We focus on the mechanics that matter most:
- Quota design aligned with market opportunity
- Territory models that balance potential and fairness
- Commission structures that drive the right behaviors
- OTE and pay-mix frameworks that scale with growth
- Transparent dashboards that let reps track progress in real time
- Governance processes that adapt to change without chaos
Every framework we build connects individual motivation to company growth.
Plans designed to be applied
We have rebuilt quota-setting frameworks, reworked commission plans and balanced incentives across functions. We know how to diagnose a plan that no longer works and how to fix it.
We also help you implement these models in your CRM, align leadership and communicate clearly with your teams. To connect these plans to day-to-day management, see our support in sales performance management.
“At Atscale, they are former salespeople, they started their mission with a high vision scope and then went very deep into details with an operating plan and helped us execute”
Additional services
Frequently asked questions about sales compensation
Everything you need to know about designing and managing sales compensation plans.
1. What is target & compensation management, and why is it essential?
Target and compensation management consists of setting clear objectives for employees and linking them to a reward and remuneration system. It drives team motivation, aligns individual efforts with company priorities, and boosts overall sales performance.
2. How do you set realistic and motivating sales targets?
By grounding them in data: historical performance, market opportunities, individual rep capacity, and territory distribution. Objectives should be ambitious yet achievable, striking the right balance between individual and collective performance.
3. What are the most effective compensation structures?
An effective structure combines a solid base salary, target-based bonuses, sales commissions, and non-financial rewards. The plan must be clear, transparent, and directly tied to measurable business outcomes.
4. What is a sales commission?
It is the variable pay a salesperson receives based on the results they generate, on top of their base salary. Its rules are set in a commission plan: targets, calculation basis, accelerators above quota, clawback clauses and payment frequency. When well designed, it aligns individual motivation with company priorities.
5. What is the difference between a commission and a bonus?
A commission is usually proportional to a sales result, such as revenue or margin signed. A bonus rewards reaching a specific target, often as a fixed amount. Both can coexist in the same plan, provided they encourage the same behaviours.
6. What is OTE?
OTE (on-target earnings) is the total pay a salesperson receives when they reach 100% of their target: base salary plus target variable pay. It is the anchor point of the plan. The split between fixed and variable pay, and how it evolves as the company grows, is part of the frameworks we build with you.
7. What commission percentage should you set for a salesperson?
The percentage is calibrated on your revenue model, the length of your sales cycle, the role (SDR, AE, manager) and the behaviours you want to encourage. We set it based on your targets and your data, for a plan that is fair and motivating.
8. How do you set realistic sales targets?
By basing them on data: history, market opportunities, each rep's capacity and territory allocation. Automated allocation models then break targets down by team, segment or territory, so that everyone knows exactly which target to aim for and why.
9. How often should a commission plan be reviewed?
Regularly, and especially when the company changes: new segment, new offer, reorganisation, rapid growth. The governance processes we put in place allow you to adjust targets and rules without losing the teams' trust.
10. Why implement the plan in the CRM?
A plan that reps can track themselves keeps them motivated. Built into the CRM, with transparent dashboards, it lets everyone follow their progress in real time. For managers and finance, it reduces calculation errors and saves time on payouts.
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Let’s have a conversation
We value the opportunity to connect with you. Please don’t hesitate to request a call—our team is available to discuss how we can best support you.