Want to reward overperformance without blowing the budget. An accelerator commission model increases the rate when a seller passes specific levels of attainment against quota. It creates speed, focus, and a clear economic upside for top performers. In this guide you get concrete answers to the three classic questions: What should my accelerator multipliers be, how many tiers should I have, and are accelerators even necessary. You also get a simple framework to design, test, and roll out the plan.

Accelerator Commission Model: the complete guide to multipliers, tiers, and design

What is an accelerator commission model

An accelerator commission model is a commission plan where the commission rate rises when a seller reaches specific quota tiers. Example: base rate 10 percent. At 110 percent attainment you apply rate × 1.5. At 120 percent rate × 1.8. You can calculate marginally on revenue above the threshold or retroactively on the whole period after the threshold is passed.
Marginal is most used because it is fair and budget friendly. Retroactive creates stronger FOMO and a burst effect at quarter end.

When to use an accelerator model

Accelerators make commercial sense when you want to:

• Pull extra revenue in before the cut off and reward overperformance clearly.
• Prioritize large, fast deals instead of small tasks that steal time.
• Attract and retain top performers with visible upside without raising base salary.
• Link compensation more tightly to incremental ARR or gross margin.

What should my accelerator multipliers be

Start with a simple, data driven frame. Think in three inputs: historical overattainment, gross margin, and budget tolerance.

Practical baseline

• Base rate: 8 to 12 percent for AEs in new business.
• Multipliers: 1.5 at the first tier, 1.8 at the next, 2.1 and 2.5 for the top two.
• Thresholds: 100 percent, 110 percent, 120 percent, 130 percent attainment.

How to calibrate multipliers

• Review the last 4 to 6 quarters. How many reps hit 110, 120, and 130 percent.
• Calculate incremental contribution after discounts and variable delivery costs.
• Set multipliers so incremental profit stays positive at every tier.
• Simulate three scenarios in Prowi: Base, Optimistic, Tight. Adjust multipliers until your payout to profit ratio holds in all scenarios.

Rules of thumb

• High margin and low discounting. You can go higher on multipliers.
• Low margin or heavy delivery cost. Keep multipliers closer to 1.3 to 1.8.
• Many reps above 130 percent. Raise thresholds before you raise multipliers.

How many tiers should I have

Most teams should start with 3 to 4 tiers.

• 2 tiers is simple but gives less fine tuning.
• 3 to 4 tiers balance effect and clarity.
• Above 4 tiers communication gets fuzzy and settlement gets heavy.

Suggested structure

• Tier 1 at 100 percent. Motivate full delivery.
• Tier 2 at 110 percent. Reward momentum.
• Tier 3 at 120 percent. Create real upside.
• Tier 4 at 130 percent. Prize the top 10 percent of performers.

Are accelerators even necessary

Not always. Use this checklist:

• Yes if you want to accelerate quarter end, shift mix toward larger deals, and give high performers a clear upside.
• Maybe if you already use a milestone bonus at 100 percent. Consider accelerators only above the goal.
• No if your sales are very predictable, margin is tight, and you prioritize budget stability over chasing overattainment.

Marginal or retroactive

• Marginal: Every dollar above a tier gets the new higher rate. More fair, better cost control, easy to explain.
• Retroactive: Once a tier is reached, the new rate applies to the entire period. Maximum pressure and strong psychological effect. Use only if the budget can absorb swings.

Recommendation: Start marginal. Optionally add a retroactive kicker at 130 percent if you want extra punch for top performers.

Example calculation

• Quota: 1,800,000
• Base rate: 10 percent
• Tiers: 100, 110, 120, 130 percent
• Multipliers: 1.5, 1.8, 2.1, 2.5
• Attainment: 125 percent

Marginal calculation

• 0 to 100 percent: 1,800,000 × 10 percent
• 100 to 110 percent: 180,000 × 15 percent
• 110 to 120 percent: 180,000 × 18 percent
• 120 to 125 percent: 90,000 × 21 percent

The sum is the total payout. In Prowi you can simulate this live and see the curve.

Best practices that work in the real world

• Keep the plan simple. Few tiers, clear multipliers, clean thresholds.
• Define marginal vs retroactive clearly. No surprises at settlement.
• Match the plan to budget. Lock a cap for total exposure per rep in forecasting.
• Make it visual. Use a curve that shows where the rate increases.
• Evaluate quarterly. Check payout to profit, attainment distribution, discount levels, and deal mix.

Pitfalls and how to avoid them

• Thresholds that are too low create unexpected payouts. Raise thresholds before you turn up multipliers.
• Too many rules reduce adoption. Remove exceptions and special cases.
• Overuse of retroactive can blow the budget. Use retroactive as a targeted kicker.
• Weak governance creates doubt about credit, cancellations, and revenue recognition. Document everything.

Step by step implementation

1. Data and goals. Choose base rate, desired payout to profit, and targets for overattainment.
2. Design. Set 3 to 4 tiers. Start with multipliers 1.5, 1.8, 2.1, 2.5. Choose marginal as default.
3. Simulation in Prowi. Test Base, Optimistic, and Tight scenarios. See the impact on budget and the top 10 percent of reps.
4. Communication. Share a one pager with examples and a simple graph.
5. Pilot. Run one period. Measure effect, adjust multipliers and thresholds, and roll out broadly.

Frequently asked questions

What should my accelerator multipliers be
Start at 1.5, 1.8, 2.1, 2.5. Adjust based on margin, discounting, and how many historically cross 110 to 130 percent.

How many tiers should I have
Three to four. Enough to create progression without making settlement and communication heavy.

Are accelerators necessary
Only if you want to reward overattainment and drive pace. Otherwise a simple single rate or a milestone bonus can be enough.

Should I choose marginal or retroactive
Choose marginal for control and fairness. Optionally add a retroactive kicker at the highest tier for extra punch.

What if our margin is low
Lower the multipliers, raise thresholds, or limit accelerators to ARR with higher contribution margin.

Read also and related

• Need something extra at 100 percent: Milestone Bonus | Simple bonus that triggers at full attainment.
• Want a simpler model: Single Rate Commission | Linear commission with a clear relationship.

Get started today

An accelerator commission model can be your shortcut to rewarding overperformance, pulling revenue in before cut off, and attracting top talent. Start simple. Three to four tiers. Multipliers around 1.5 to 2.5. Marginal calculation as standard. Test it in Prowi and fine tune to your margin, your pipeline mix, and your budget tolerance.

Ready to try it on your numbers. Open Prowi, enter quota, base rate, and tiers, and instantly see your payout curve. When the curve looks right, you are ready to roll an accelerator commission model out across the sales organization.