Split commission is a commission payment divided between two or more salespeople who contributed to closing a deal. When multiple reps are involved in a sale—through territory overlap, team selling, or handoffs—split commissions ensure each contributor receives appropriate credit and compensation. According to SalesGlobe (2024), 45% of enterprise deals in B2B SaaS involve multiple salespeople and require some form of split.
Proper commission splitting affects team dynamics and revenue outcomes:
According to Alexander Group (2024), teams with well-defined split rules have 28% fewer internal conflicts over deal ownership.
| Split Type | Description | Typical Split |
|---|---|---|
| SDR/AE Split | SDR sources, AE closes | 10-20% / 80-90% |
| Overlay Split | Specialist assists territory rep | 20-30% / 70-80% |
| Territory Overlap | Deal spans multiple territories | 50% / 50% |
| Team Selling | Multiple AEs collaborate | Equal or role-based |
| Handoff Split | Rep transition mid-deal | Based on stage % |
| Channel Split | Partner + direct rep | Varies by agreement |
An SDR books a meeting that converts to a $100,000 deal:
| Role | Split % | Commission Model | Earnings |
|---|---|---|---|
| SDR | 15% | $50/meeting + 2% of ACV | $50 + $300 = $350 |
| AE | 85% | 10% of ACV | $8,500 |
| Total Commission | $8,850 |
A deal involves a customer with offices in two territories. Both reps contributed:
| Rep | Split % | Deal Value | Commission (10%) |
|---|---|---|---|
| Rep A (Primary) | 60% | $60,000 | $6,000 |
| Rep B (Assist) | 40% | $40,000 | $4,000 |
| Total | 100% | $100,000 | $10,000 |
Rep leaves company with deal at Stage 3 of 5. New rep closes it:
| Rep | Stages Owned | Split % | Commission |
|---|---|---|---|
| Departing Rep | 1-3 (60%) | 60% | $4,800 |
| New Rep | 4-5 (40%) | 40% | $3,200 |
| Total ($80k deal @ 10%) | $8,000 |
Fixed percentage splits: Predetermined percentages based on role. Simple and predictable but may not reflect actual contribution.
Manager-determined splits: Sales leadership decides splits case-by-case. Flexible but can create perceived favoritism.
Stage-based splits: Split percentage determined by deal stage at handoff. Objective and tied to progress.
Revenue-based splits: Split based on revenue attributed to each territory or segment. Works for multi-location deals.
Document rules in advance: Define split scenarios before they happen. Reps should know exactly how various situations will be handled.
Keep it simple: Complex split calculations create confusion and disputes. Standard percentages by scenario work better than custom negotiations.
Make primary owner clear: Every deal needs one primary owner responsible for driving it forward. Splits don't change ownership—they share credit.
Use CRM to track splits: Record split percentages and participants directly on opportunities. Don't rely on memory or spreadsheets.
| Aspect | Split Commission | Double Credit |
|---|---|---|
| Total paid | 100% of standard | 200% of standard |
| Cost to company | Same as single rep | Double commission expense |
| When used | Shared contribution | Encouraging collaboration |
| Quota credit | Split matches commission | Both get 100% quota credit |
Use splits when contribution is actually shared. Use double credit when you actively want to incentivize collaboration across teams or territories—for example, when launching in new markets.
Have clear, documented rules in advance. When disputes arise, a sales leader with a neutral position should make decisions based on documented contribution in CRM.
Typically yes—quota credit should match commission split. Otherwise, reps may focus on activities that affect quota but not commission (or vice versa).
Manual split tracking leads to errors, disputes, and hours of reconciliation. With Prowi, you can automatically calculate splits based on your rules, track multi-rep deals, and give everyone visibility into their share.