Types of Sales Commission Plans to Consider 


Professionals in the sales sector are rewarded in a manner that is distinctive. The way you get compensated might vary greatly depending on your employer, industry, and the product you are selling. Sales commission plans come in a variety of forms.  There are many different kinds of sales compensation plans, and this blog will offer you information on it. 

Types of Sale Commission Plans 

There is no one-size-fits-all compensation scheme for salespeople. However, there are a wide variety of commission plans available. A few of the most popular sales compensation plans are as follows:

  • Straight Pay/No Bonuses

In today’s economy, this is the most frequent kind of compensation plan. A yearly pay with no commission is precisely what it sounds like. The success of the business may be linked to a yearly incentive payment for the employee. While it’s simple for the corporation to organize payroll, it doesn’t do anything to motivate staff to increase sales.

  • Salary Plus Bonuses

When it comes to compensation schemes in sales, this is a frequent one. Sales commissions are added on top of an employee’s regular compensation. They get a raise in salary if they sell more. Percentage or set fees might be used to calculate the commission. Companies have different salary and commission structures.

  • Profit Margin 

When the firm is performing well, sales representatives are paid a commission. Depending on the overall success of the organization, your compensation may go up or decrease.

  • Territory volume 

Sales organizations that use a team-based approach to sales are notorious for this. At the conclusion of the sales period, the total sales in a certain region are totaled up, and each sales agent is paid commission on the same basis. 

As an example, each sales representative earns $20,000 when the firm has five representatives operating in a region and sells $100,000 in business during a pay period.

  • Draw against commission 

Essentially, this is a commission-only arrangement and elevate.so understands it well. At the beginning of each payroll period, employees are given a pre-tax pay advance, which serves as a basic salary. This sum is withheld from the employee’s commission at the conclusion of the pay period. It’s a type of payday loan. This concept has a major flaw: workers may be in the red if they don’t make enough sales.

  • Commission Capped

Basic pay and the possibility to earn a commission are offered to sales representatives. In spite of this, the commission amount is limited. As a result, it restricts your earning potential. Companies can more easily budget, but sales people have little motivation to keep selling after they’ve hit their ceiling.

  • Set  Rate

You get paid a certain sum for each sale. While selling product A, your commission will be $100, and when selling product B, it will be $50.


A compensation plan that supports strong sales behaviors should be selected. The sort of activities that will benefit your company should be rewarded in the form of commissions. Sales compensation software from ElevateHQ helps keep your payment calculations in sync with real collections made on accounts as and when they are made, ensuring that your payouts are accurate. 

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