accelerator

Accelerator commission with a cliff

No commission below a threshold, e.g. 50% of quota, the full rate from the first krone once it is reached, and a higher rate above quota.

Prøv med jeres tal
Quota (annual)€
Commission rate€
Målopfyldelse100 %
Commission at 100%€23.6005% to 70%, 8% to 100%, 12% above
Quota€400.000Annual target
Sold at 100%€400.000Commissionable revenue
Effective rate5.9%Payout ÷ sold

This model works if

AE teams with realistic quotas, where a weak quarter should pay nothing and top performance should pay well.

  • Quotas are realistic and trusted
  • You do not want to pay commission on a weak quarter
  • You want top reps selling above quota

Two rules in one plan

The plan combines a cliff at the bottom with an accelerator at the top. Below the threshold, for example 50% of quota, no commission is paid. Once the threshold is reached, the base rate applies to all sales from the first krone up to quota. Above quota the rate steps up. The rep earns nothing on a weak quarter and more than usual on a strong one.

Worked example

The quarterly quota is DKK 1,000,000, the threshold 50%, the base rate 8% and the rate above quota 12%. At DKK 450,000 in sales, commission is DKK 0. At DKK 500,000 it is DKK 40,000, because 8% now applies to all sales. At DKK 1,000,000 it is DKK 80,000. At DKK 1,250,000 it is DKK 80,000 + 12% of DKK 250,000 = DKK 110,000. See the payout above quota in the commission accelerator calculator.

Cliff or non-retroactive threshold

With a cliff, the rate applies from the first krone once the threshold is reached. That creates a jump of DKK 40,000 at DKK 500,000 in the example. The alternative is a threshold where only sales above it earn commission: at DKK 1,000,000 that pays 8% of DKK 500,000 = DKK 40,000. It removes the jump but halves commission at quota. For a softer floor, use a decelerator with a low rate instead of zero.

Pitfalls

The jump at the threshold gives reps a reason to hold deals back when the quarter will not reach 50% anyway, and to squeeze deals in just before the period closes. The threshold should be low enough that an average rep reaches it in a bad quarter. Set it too high and the plan behaves like a milestone bonus with a long run of zero months for anyone behind. Set a realistic quota first with the sales quota calculator.

Danish rules

Threshold, rates and quota must be in writing in the commission agreement (Danish Employment Contracts Act, section 3, in Danish). Also state whether quota is reduced during holiday, sick leave and parental leave, so paid absence does not cost the rep the threshold; the commission during sick leave calculator shows the average method. New annual targets generally do not need notice when the agreement says targets are set each period, but adding a cliff to an existing scheme makes the rep worse off and may require notice. Have your lawyer review the agreement.

Where should the threshold sit?

There is no fixed rule. Look at your history: the threshold should sit below what most reps reach in a weak quarter, so it only catches real underperformance and not one unlucky quarter.

Should the cliff apply to new hires?

Rarely during ramp. Give new reps a lower quota or a draw against commission for the first months, so the threshold does not bite before they have a pipeline.

In Prowi

Create the plan, pick the measurement point and period, set the rule, assign it to roles. From there every closed deal in your CRM is priced live, the rep sees it in the app, the manager approves, and finance exports the file. When data changes, the correction follows automatically.