If you pay flat % of revenue, reps discount to close. If you don't separate hardware from service-contract attach, reps never sell the service. If you pay the same for big deals and small ones, reps cherry-pick. The comp plan isn't an HR document — it's the strategic lever that determines which deals get worked, which products get attached, and how much margin reaches the bottom line. Model it. Then change it.
Who you're paying, base salary, team size. Defaults are typical for a mid-market B2B equipment outside rep — say, Wheeler Cat construction-equipment rep covering a territory.
The mechanical core of the plan. Rate below quota, rate above quota, accelerator structure, cap if any.
Different deal types deserve different commission rates. Hardware sales drive top line; service contracts drive recurring margin; parts drive everyday profitability. Most plans pay the same rate across all three — and reps respond by selling only hardware.
Mix of revenue + commission rate by deal type:
New hires take time to ramp. Deals that don't close as expected need to come back from the rep. The two structural details that determine plan fairness.
Comp curve at every attainment level. Plan-cost as % of revenue. Behavior-shift predictions if you change the levers.
The Business Operators Blueprint covers territory design, pipeline discipline, win/loss methodology, hunter-vs-farmer structure, and the second-sale playbook. The CFO & Controller's Guide adds sales-cost benchmarking, commission accrual accounting, ASC 606 revenue recognition on bundled deals, and the SG&A leverage that compounds when comp design works.
Educational and informational purposes only. This calculator and any output it produces are intended solely for general educational and decision-support purposes. They do not constitute investment, tax, legal, accounting, HR, or any other professional advice, and they do not create a fiduciary, attorney-client, accountant-client, or advisor-client relationship of any kind.
Estimates based on your inputs and industry-typical response rates. All results are estimates derived from the data and assumptions you provide. Actual rep behavior depends on culture, management discipline, deal-review process, territory design, product fit, market conditions, and dozens of other variables this tool does not capture. Industry response rates to comp-plan levers (attach lift, discount discipline, second-sale uplift, ramp-period retention) are typical ranges, not guarantees. The Baratelli Institute, its affiliates, and any co-branding professional make no warranty of accuracy, completeness, currency, or fitness for any particular purpose, and disclaim all liability for decisions made in reliance on the output.
Consult your own qualified professionals. Before implementing any compensation plan calculated here — or any material change to an existing plan — consult your own attorney, CPA, HR professional, employment counsel, or sales operations specialist licensed in your jurisdiction who has reviewed your specific facts and applicable current law. Compensation-plan changes may have legal, payroll-tax, ASC 606 revenue-recognition, and ERISA implications depending on plan design. The Baratelli Institute is a publisher of practitioner reference material. It is not a registered investment adviser, broker-dealer, law firm, accounting firm, HR consultancy, or sales operations advisor.
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