Leader
Cheat Sheet
Free
Comp Plan Types Cheat Sheet
A one-page, side-by-side comparison of the four core sales compensation models — core commission, tiered, relative-rank, and multiplier — with the mechanic, best-fit scenario, and failure mode for each so you pick the right one instead of the familiar one.
What's inside
- Core / flat-rate commission — mechanic, best-for, watch-out
- Tiered commission — mechanic, best-for, watch-out
- Relative-rank (stack-rank/curve) — mechanic, best-for, watch-out
- Multiplier (accelerator-driven) — mechanic, best-for, watch-out
- Quick decision guide by sales motion
- The one mistake that shows up in every model regardless of choice
| Model | Mechanic | Best For | Watch-Out |
|---|---|---|---|
| Core / Flat-Rate Commission | Fixed % of every dollar sold, from $0. Payout = Deal Value × Fixed Rate | Transactional, high-velocity sales where simplicity drives behavior; early-stage teams that need the plan understood in 10 seconds | Doesn't reward overperformance differently than baseline — top reps lose motivation once quota clears |
| Tiered Commission | Rate increases at pre-set revenue bands within the period. Payout = Σ(Revenue in each band × that band's rate) | Complex/enterprise sales where you want reps pushing past quota, not stopping at 100% | Reps can "bank" deals near a tier boundary to start the next tier fresh next period — needs a banking/timing rule |
| Relative-Rank (Stack-Rank / Curve) | Payout set by rank vs. peers in the period (e.g. top 10% get 2x, middle 60% get 1x, bottom 30% get 0.5x), not absolute attainment | Mature teams with proven-comparable territories where you want relative pressure, not just absolute number-hitting | Punishes reps in a genuinely harder territory unless territories are proven equitable first (run the Top-Down vs. Bottom-Up Quota-Setting Framework before using this model) |
| Multiplier (Accelerator-Driven) | Flat base rate below quota; rate multiplies sharply above threshold bands (e.g. 1x to 100%, 1.5x 100–120%, 2x above 120%). Payout = Deal Value × Base Rate × Attainment Multiplier | Motivating a small number of top performers to blow past quota; land-and-expand motions where the marginal deal is disproportionately valuable | Uncapped versions can produce runaway payouts on one whale deal — model the cost curve before approving (see Accelerator & Decelerator Curve Calculator) |
Quick Decision Guide
- New team, need instant comprehension → Core.
- Enterprise/complex deals, want reps pushing past quota → Tiered.
- Mature team, proven-equitable territories, want relative pressure → Relative-Rank.
- Want to supercharge top performers on land-and-expand → Multiplier.
The One Mistake That Shows Up in Every Model
Whichever model you choose, the plan fails if the metric it pays on isn't the metric that actually drives the business outcome you need — e.g. paying on bookings when the business needs cash collected, or paying on new logos when the business needs net revenue retention. Pick the metric first. Pick the model second.
How to use it
Match your sales motion to a row in the table, confirm with the decision guide, then check the model against the metric-first rule before building the plan out in full.