Pay your sellers for the outcomes that matter, keep costs predictable, and put it in writing the way the law expects.
There is no single right plan. Pick the structure that matches how mature your sales motion is.
| Structure | How it works | Best for |
|---|---|---|
| Lump sum per deal | A fixed amount paid for each qualifying deal signed. | Very early sales, when deal sizes vary and logos matter more than revenue. |
| Percent of revenue | A percentage of bookings or collected revenue from the customer. | Products with predictable pricing and a steady sales cycle. |
| Quota and OTE | A target total pay (base plus variable) tied to a quota, often with accelerators above 100%. | Established sales teams with reliable forecasting and clear territories. |
| Milestone hybrid | Separate payments at signing, at go-live, and on early revenue. | Early-stage companies that need deals to launch, not just sign. |
Rule of thumb: pay for the behavior you need right now, and plan to change it. An early-stage plan that rewards signed logos should shift toward revenue once the sales cycle is predictable.
An illustrative early-stage plan, designed to reward deals that actually launch. Amounts are examples only.
A lump sum, such as $5,000, when a new customer signs. Capped annually, for example at $50,000. New logos only. Free pilots don't count.
A second lump sum when the customer is live in production. Uncapped, but only for deals above a minimum expected revenue.
A percentage of net revenue from the customer for the initial contract term. Renewals excluded.
Higher rates for better deals. For example, a top tier for fast go-lives with a guaranteed minimum, and a standard tier for everything else.
All three components pay out quarterly, at the end of the month after quarter close. Commission earned in Q1 is paid April 30. One date, every quarter, no surprises.
Plus the editable Word template.