When it makes sense
The plan fits when you need to get started quickly or when the business has a certain uniformity: a new sales function, a new market, a team that needs a clear frame to grow in. A flat rate is not a downgrade. It is a deliberate choice for transparency while you learn more.
Choosing the measurement point
ARR ties commission to growth and is easy to understand in subscription. Invoiced revenue is right when liquidity matters. Contribution margin when margins vary and sales influences delivery cost. Pick the signal that matters now; refine when you have data.
Setting the rate
Work backwards from OTE and quota. Variable pay of €60,000 on a €600,000 quota means an average rate of 10% gets a rep to target at 100%. Decide the rate in data, not in a meeting.
Over-performance
The classic objection is that a flat rate ignores the last 20%. Add a simple accelerator above 100%, say 12–15%, and the plan is still explainable on one slide.
Corrections and real life
Customers change, cancel, get credited. In Prowi the calculation follows the data: when a deal changes value or status, the correction is computed, shown to the rep, and included in the next payroll run.
In Prowi
Create the plan, pick the measurement point and period, set the rule, assign it to roles. From there every closed deal in your CRM is priced live, the rep sees it in the app, the manager approves, and finance exports the file. When data changes, the correction follows automatically.