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ACV, TCV, tierd models and the like can be complex. Search and find the explanation of the terms you are looking for.
An accelerator in commission increases the rate when sales targets are exceeded. Read how the accelerator motivates salespeople and drives growth.
Annual Recurring Revenue (ARR) is the yearly value of recurring subscription revenue. Learn how ARR is calculated and used in sales commissions.
Annual Contract Value (ACV) shows the annual contract value per customer. Understand how ACV is used in commission, bonus and growth strategy.
At-risk pay is the portion of an employee's compensation that is only paid when specific goals are achieved. Learn how at-risk pay impacts motivation and pay structure.
The proportion of target fulfilment, for example how much of OTE has been achieved. See how attainment is used for commission.
Base salary is the fixed, guaranteed portion of an employee's compensation paid regardless of performance. Learn about the role of base salary in sales compensation.
It laid down the starting point for a bonus or commission structure.
An additional payment in addition to fixed salary, typically dependent on performance.
CAC is the total cost of acquiring a new customer, including marketing, sales, and onboarding - a critical metric for SaaS companies.
CLV is the total value a customer generates for a company over the entire customer relationship - a key metric for SaaS and subscription businesses.
Churn rate measures what percentage of customers or revenue a company loses over a period. Learn how churn affects commission and sales targets.
Reimbursement of previously paid commission, typically by churn.
The date a deal officially closes and can trigger commission.
The share of the sale which is paid to the seller as a reward.
A commission draw is an advance against future commissions that ensures salespeople have a minimum income during low-sales periods or onboarding.
A commission plan can include several commission models for how commissions are calculated and paid.
A commission rate is the percentage or fixed amount a salesperson receives as compensation for each sale. Learn how to set the optimal commission rate.
A summary of commissions earned in a given period for either one commission model or multiple models.
Commission structure defines how salespeople's commission is calculated. Learn about different models, components, and best practices for designing effective plans.
A comprehensive summary describing salary, bonus and commission.
The percentage of leads that turn into closed sales.
Post-regulation to correct commission after actual data back in time.
Rules for who should be attributed commissions in complex deals.
The economic value of a single sales order.
A decelerator lowers commission rates when reps perform below quota. Learn how decelerators are calculated, when they make sense, and see concrete examples of how they impact your sales team's earnings.
A form of advance on commission that may have to be offset later.
A fixed percentage of sales as commission.
Estimation of future revenues and thus expected commission.
Gross margin commission calculates salesperson compensation based on profit margin rather than revenue. Learn how this model increases profitability and aligns incentives.
ICM is the discipline and software category focused on designing, managing, and optimizing commission and incentive programs for sales organizations.
A comprehensive guide to sales incentives: types, psychology, design principles, industry benchmarks, and best practices for driving performance.
An additional commission, triggered by particularly good results.
The delay between the deal closing and the commission payout.
A ranking system that shows top sellers and performance.
Used for commission in SaaS.
Commissions based on profit rather than revenue, also sometimes called contribution margin.
Bonus paid upon achievement of specific milestone.
A factor that adjusts commission based on performance.
NRR measures how much revenue you retain and expand from existing customers, including churn, downgrades, and expansion - a critical SaaS metric.
Revenue from new customers, often separately bonified.
Override commission is a compensation model where sales managers receive a percentage of their team's total sales. Learn about manager compensation and how overrides motivate leadership.
Pay mix is the ratio between base salary and variable compensation. Learn what 60/40, 50/50 and other models mean, see calculation examples, and find the optimal pay mix for your sales team.
The actual payout to the seller.
How often commissions are paid (monthly, quarterly).
Performance bonus is a one-time payment to salespeople upon achieving specific goals. Learn about types, calculations, and best practices for bonus programs.
A list of deals that are either open or closed in a kanban overview.
The goal a seller must achieve before commission is activated.
How much of the quota has been reached?
Start-up period with special conditions for new employees.
Renewal commission is compensation paid for renewing existing customer contracts. Learn about renewal compensation models and how they impact customer retention.
Residual commission is a compensation model where salespeople receive ongoing payments as long as their customers remain active. Learn about recurring commission structures and best practices.
Revenue Operations (RevOps) is a strategic function that unifies sales, marketing, and customer success under one umbrella to optimize the entire customer journey and maximize revenue.
Sales crediting determines how commissions are assigned when multiple salespeople contribute to a deal. Learn about crediting models, rules, and best practices for fair attribution.
Sales Performance Management (SPM) is a discipline encompassing all processes to manage and optimize sales team performance. Learn about components, benefits, and implementation.
A sales quota is the sales target a salesperson is expected to achieve within a given period. Learn how quotas are set and used in commission calculations.
Sandbagging is when salespeople deliberately delay deals or underreport pipeline to gain advantages in future periods.
A short-term bonus or reward, often paid out in cash or as gift cards, given to motivate sellers to sell a particular product or reach a quick goal.
When several share the commission for the same deal.
TCV (Total Contract Value) is the total value of a customer contract over its entire duration. Learn how TCV is used in commission calculation and sales measurement.
A defined goal that triggers commission.
Total Target Compensation (TTC) is the total annual compensation an employee can expect when achieving 100% of their goals, including base salary and variable pay.
True-up is a periodic adjustment of commission to ensure correct payment. Learn about true-up processes and how they're used in commission administration.
Upsell and cross-sell commission rewards salespeople for growing revenue from existing customers. Learn about expansion revenue compensation and best practices.
Variable compensation is the portion of an employee's pay tied to performance, sales results, or achieving specific goals. Learn how to structure and calculate variable pay effectively.
Winback is the strategy for re-engaging lost customers. Learn what winback means, why it's more cost-effective than acquiring new customers, and how to build an effective winback strategy with the right incentives.