In incentive models also called commission models, the concept emerges baseline often up as a quiet but decisive factor. In English you can call it a starting point or a Baseline. Baseline describes the level against which outcomes or rewards should be measured. It can be a set turnover, a minimum target or a budget, which forms the framework for when commissions and bonuses begin to count.
When a company prepares a salary and commission plan, baseline is the first layer upon which all subsequent rates and multipliers build upon. Without a clear baseline, it becomes difficult to define what counts as success and how it should be rewarded. Baseline is therefore not just a technical size in a spreadsheet, but a management tool that creates fairness and predictability throughout the sales organization.
A classic example would be a seller who has a target of DKK 5 million in annual revenue. In this context, the baseline can be set at 80 percent of the quota, which means that commissions are only triggered when sales exceed DKK 4 million. For the company, this structure ensures that there is a minimum level of performance before extra rewards are paid out. For the seller, the baseline is a clear marker: there is a floor to cross before accessing the attractive incentives.
At the same time, baseline can be used to balance risk between company and employees. If everyone is rewarded from the first penny, budgets can slip quickly, especially in industries with long sales processes or large fluctuations in deal sizes. A baseline provides a safety net for the company, without taking away motivation from employees. Once the baseline is crossed, progression often becomes more dynamic because incentives accelerate.