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Sales commission. Modeled honestly.
Tiered rates, accelerators, OTE — see what a rep actually takes home at any attainment level.
Inputs (annual)
Results
Attainment
75%
vs quota
Commission
$60,000
for the year
Total comp
$140,000
base + commission
OTE
$160,000
on-target earnings
Benchmark
On pace
Workable. Coach pipeline coverage to push past 100%.
How it works.
Total comp = base + commission. OTE is what the rep takes home at 100% quota. Accelerators above quota motivate the top 20% to keep selling once they've cleared their number.
FAQ.
How is sales commission calculated?+
Commission = closed revenue × commission rate. Tiered plans apply higher rates once a rep crosses quota (e.g. 10% to 100% of quota, 15% above). Accelerators multiply that uplift (e.g. 1.5× rate above 100%, 2× above 150%).
What is OTE (On-Target Earnings)?+
OTE = base salary + variable comp at 100% quota. A $120K OTE with a 60/40 split means $72K base + $48K variable when the rep hits quota.
What's a typical commission rate for B2B SaaS?+
10% of new ARR is the median for full-cycle AEs. SDRs sit around 5–10% of sourced pipeline value. Enterprise reps often run lower base-rate (6–8%) with steeper accelerators.
Should I include MRR or ARR in commission?+
Pay on ARR (annualized contract value) for new business. MRR-based plans drag motivation because deal value looks small. Use TCV only for multi-year deals with steep ramps.
How do accelerators work?+
Above quota the rate multiplies — typical pattern: 1× rate to 100%, 1.5× from 100–150%, 2× above 150%. Caps are anti-pattern: they punish your best reps.