Designing Non-Linear Paylines and Payout Curves
A practical guide to building tiered commission plans, calculating marginal payouts, and using accelerators and decelerators to motivate reps while protecting margins.
Expert guides, mathematical frameworks, and governance strategies for incentive plan design.
A practical guide to building tiered commission plans, calculating marginal payouts, and using accelerators and decelerators to motivate reps while protecting margins.
Threshold floors protect budgets, but cliffs and poor ramp design can destroy morale. Here is how to use floors, avoid hard cliffs, and ramp new hires without breaking the sales force.
Decelerators let enterprise sales teams keep plans uncapped while protecting gross margins on windfall deals. Here is how to set the threshold and calculate the savings.
A step-by-step guide to calculating flat commission rates that protect gross margin, account for accelerator parity, and keep total sales compensation cost within unit economics.
SPIFFs are surgical tools, not band-aids. Here are the five scenarios where short-term incentives deliver positive ROI — and the traps to avoid.
Five essential governance rules for running bulletproof SPIFFs: eligibility caps, unpredictable timing, clawbacks, and centralized budget pools that prevent rep gaming and budget overruns.
Capping payouts protects the budget but can push top performers to sandbag deals or leave. Here is how to weigh caps against decelerators and design a plan that retains rainmakers.
Model tiers, accelerators, and caps against your own quota and OTE.