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What Is a Sales Commission?
A sales commission is variable compensation paid as a percentage of revenue generated. It aligns rep incentives with company revenue goals.
Commission = Revenue × Commission Rate
OTE Attainment
On-Target Earnings (OTE) is the total compensation a rep earns at 100% quota:
Attainment = Total Compensation / OTE × 100
Common B2B SaaS Commission Structures
| Role | Typical Commission Rate | OTE Split |
|---|---|---|
| Account Executive | 8–12% of ARR | 50/50 base/variable |
| SDR/BDR (Sales/Business Development Representative) | 4–8% on pipeline | 70/30 base/variable |
| Sales Manager | 2–4% on team | 60/40 base/variable |
| CSM (Customer Success Manager) / Account Manager | 5–10% on expansion | 70/30 base/variable |
Accelerators
Most plans include accelerators above 100% OTE — the commission rate increases for revenue above quota. This rewards overperformance and retains top reps.