---
title: "Commission"
description: "Sales Commission is performance-based pay. Learn about commission structures, accelerators, clawbacks, and how to design effective comp plans."
---

## Pay for Performance

The "Coin-Operated" nature of sales. Commission drives behavior. If you pay for new logos, reps hunt. If you pay for retention, reps farm. Designing the right plan is critical to strategy execution.

**Standard Split:** 50/50 (50% Base, 50% Commission at OTE). **Accelerators:** Higher % payout after hitting 100% quota (e.g., 10% up to quota, 15% after). This rewards top performers disproportionately.

## Clawbacks and Draws

**Clawback:** Taking back commission if the customer churns early (<90 days). Protects the company. **Draw:** An advance on future commissions (Recoverable) or a guaranteed minimum (Non-recoverable) for new hires ramping up.

## SalesMind AI and Commission

SalesMind AI helps reps maximize their commission checks by increasing their [Sales Velocity](/en/resources/glossary/sales-velocity). More deals closed faster = higher payout. For managers, it provides the data transparency needed to calculate complex commissions accurately without disputes.

## Frequently Asked Questions

### What is a "Bluebird"?

A deal that falls into a rep's lap with little effort (e.g., an inbound lead that is ready to buy). Managers sometimes exclude these from full commission.

### Are commissions taxed differently?

In many countries, yes, or withheld differently. They are "supplemental income". But ultimately, it's all income at tax time.

### What is a "Cap"?

A limit on total commission. Good sales plans are "Uncapped" - you want your top rep to make more than the CEO if they bring in that much revenue.