Commitment pays more
The base is first-year value. If the customer commits for two or three years, commission is multiplied by a multiplier, for example 1.0 for one year, 1.3 for two and 1.5 for three. The rep earns more for the longer deal, but the company does not pay commission on the whole total contract value on day one.
Worked example
A customer pays DKK 120,000 a year and the rate is 10%. A one-year deal pays DKK 12,000. A three-year deal pays DKK 120,000 × 10% × 1.5 = DKK 18,000. Commission on the full contract value of DKK 360,000 would be DKK 36,000, twice as much as with the multiplier.
Combine with other models
The multiplier sits on a flat rate or tiered commission. Always pair it with a clawback, so the extra commission is reversed if the commitment does not hold. To reward the customer year by year instead, see residual commission. Try the base rate in the commission calculator.
Pitfalls
Reps can buy the commitment with a discount. Limit discounts on multi-year deals, or calculate commission on the price after discount. Apply the multiplier only to years the customer cannot cancel. A three-year deal with a break clause after 12 months is really a one-year deal.
Danish rules
Put the multiplier and its conditions in the commission agreement (Danish Employment Contracts Act, section 3, in Danish). If commission can be reversed when the customer cancels, that must be agreed in writing in advance. Under section 9(2) of the Danish Salaried Employees Act (in Danish), an advance on commission can only be recovered from pay owed, and the same principle is a safe starting point for clawbacks. Use the commission clawback policy template and check with your lawyer.
Why not pay on total contract value?
Because revenue in years two and three arrives later, and the customer may go bankrupt or renegotiate in the meantime. The multiplier gives a clear incentive now and keeps the cost close to what is actually invoiced.
Can the extra commission be paid over time?
Yes. The plan can pay the base commission at signature and the extra part when year two is invoiced. That reduces the need for clawbacks, but the rep waits longer for the money.
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.