What is activity-based commission?
Activity-based commission is variable pay for activities in the sales process, such as held meetings, completed demos or qualified leads, instead of only for closed deals. It is mostly used for SDR and BDR roles, where the rep creates meetings that another rep closes.
The idea is to reward what the rep can control. An SDR rarely controls whether a deal closes three months later, but can control whether good meetings are booked and held.
Typical activities that trigger commission
| Activity | Typical requirement |
|---|---|
| Held meeting | The meeting took place, not just booked |
| Qualified meeting | The prospect fits your target profile and the receiving rep accepts the meeting |
| Demo | The demo was completed with a decision maker |
| New opportunity | The meeting is created as an opportunity in the CRM with a value |
A plan can combine a rate per activity with an amount when the meeting later becomes a won deal. That rewards both volume and quality.
Example
An SDR earns $50 per held, qualified meeting and an extra $200 per meeting that later becomes a won deal. In March the SDR holds 18 qualified meetings, and 3 of them are won.
| Part | Calculation | Amount |
|---|---|---|
| Qualified meetings | 18 × $50 | $900 |
| Won deals | 3 × $200 | $600 |
| Total | $1,500 |
The amount for won deals is usually paid only once the deal has closed. Put that in the plan so the SDR knows when the money arrives.
When does it fit, and what are the risks?
- New reps: during a ramp period, activity targets can pay for effort before the first deals close.
- Long sales cycles: when months pass between first meeting and signature, activities give faster feedback.
- Volume over quality: pay for booked meetings and you get a lot of booked meetings. Require meetings to be held and qualified.
- Crediting doubts: who gets the meeting if two SDRs spoke to the same prospect? Set a crediting rule up front.
Activity-based commission is not the same as a spiff. A spiff is a short campaign, while activity-based commission is a standing part of the plan. For pay models for meeting setters, see the guide to SDR and BDR compensation.
FAQ
What is activity-based commission?
It is commission or bonus paid for activities such as held meetings, demos or qualified leads, rather than only for closed deals.
Who uses activity-based commission?
Mainly SDRs and BDRs who book meetings for other reps, and new reps during their ramp period.
How do you stop reps booking poor meetings?
Pay for held and qualified meetings, let the receiving rep accept the meeting, and tie part of the amount to the meeting becoming a won deal.
Is activity-based commission part of salary?
Yes. It is pay in the same way as other commission and bonuses and goes through payroll.
Activity-based commission in Prowi
Prowi calculates commission live from data and shows the amount in the mobile app, so an SDR can follow meetings and commission through the month. If the activities can be captured as data, for example from the CRM or via CSV, they can be used in the calculation alongside deals. Book a demo.
In Prowi
Every term on this page is a rule you can write into a commission model in Prowi. The model reads the deal from HubSpot the second it closes, applies the rule, and the rep sees the result on their phone before the day is over.