Sales commission plan template
Comp plans drive behavior more than any pep talk. Keep them simple enough that a rep can calculate their own paycheck.
Reward the outcomes the business actually needs.
Short answer
A commission plan template defines how reps are paid: base salary, on-target variable, quota, commission rate, and accelerators for overperformance. A good plan is simple, aligned to company goals, and motivating. Below is the template with each component and a worked example.
Key takeaways
- Keep the plan simple enough for reps to self-calculate.
- Align payouts to the outcomes the business needs most.
- Use accelerators above quota; avoid commission caps.
- Set OTE and quota so a typical strong rep can realistically hit it.
The components
What a comp plan defines.
| Component | Definition | Example |
|---|---|---|
| Base salary | Fixed pay | $70,000 |
| On-target variable | Commission at 100% of quota | $70,000 |
| OTE | Base plus on-target variable | $140,000 |
| Quota | The number to hit | $700,000 / year |
| Commission rate | Variable divided by quota | 10% |
| Accelerator | Higher rate above quota | 15% over 100% |
Design principles
Keep it clean and fair.
- Simplicity: a rep should be able to compute their commission in their head.
- Alignment: pay more for the deals the business values (new logo, multi-year, strategic products).
- Accelerators reward overperformance; avoid caps, which cap effort.
Generate and send this with Ardovo
You do not have to start from a blank page. Tell Rook, Ardovo's AI operator, what you need (for example, "sales commission plan template") and it drafts a version grounded in your real pipeline data, personalizes it for the specific contact or deal, and can send it or attach it to the record in one step. Every template lives in one shared library, so your whole team stays on message and nothing gets rewritten from scratch.
Frequently asked questions
What is OTE in a commission plan?
On-target earnings: the total a rep makes at 100 percent of quota, combining base salary and on-target variable commission. A 50/50 split between base and variable is common for full-cycle sales roles.
How do I calculate a commission rate?
Divide the on-target variable pay by the annual quota. If variable is $70,000 and quota is $700,000, the base commission rate is 10 percent. Accelerators then raise the rate on revenue above quota.
Should a commission plan have a cap?
Generally no. Caps tell your best reps to stop selling once they hit the ceiling. Accelerators above quota do the opposite, rewarding overperformance and keeping top performers motivated all period.