tiered

Tiered commission

Several rate bands by attainment. Each band pays its own rate on the revenue inside it, so the curve bends upward gradually rather than at one cliff.

Prøv med jeres tal
Quota (annual)€
Commission rate€
Målopfyldelse100 %
Commission at 100%€23.6005% to 70%, 8% to 100%, 12% above
Quota€400.000Annual target
Sold at 100%€400.000Commissionable revenue
Effective rate5.9%Payout ÷ sold

This model works if

Teams with a spread of performance, where mid-performers should not be left behind.

  • A spread of performers on the team
  • You want mid-performers rewarded too
  • Predictability over one big step

Bands instead of a cliff

Each band pays its own rate on the revenue inside it. The curve bends upward gradually, so the incentive is smooth rather than concentrated at one threshold.

Show the band live

Tiers only change behaviour if reps can see which band they are in and what the next deal pays. That is what the Prowi app does.

Keep it to three

Three bands cover almost every case. Five bands is a spreadsheet, not an incentive.

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.