A decelerator is a mechanism in a commission structure that reduces the commission rate when a sales rep performs below a certain threshold, typically 100 percent of quota. While an accelerator rewards overperformance with higher commission rates, a decelerator does the opposite: it lowers the rate for underperformance.
The purpose of a decelerator is to create a clear incentive to hit minimum targets. It signals to reps that there are real financial consequences for falling short of quota.
Decelerators serve several strategic purposes in a sales organization:
Protecting the company's bottom line: When a rep doesn't deliver expected sales, the decelerator reduces compensation costs proportionally. This ensures you're not paying full commission for partial results.
Motivating baseline achievement: Knowing that commission rates drop for underperformance motivates reps to prioritize hitting quota. It creates a clear floor that everyone strives to reach.
Creating fairness across the team: Without decelerators, there can be a perception that underperformers "get off easy." A decelerator ensures symmetry between rewards and consequences.
Attracting confident talent: When a comp plan includes decelerators, it typically attracts reps who are confident in their abilities. This can raise the overall caliber of your sales team.
A decelerator is typically expressed as a factor below 1.0 that's multiplied against commission when performance falls below a certain threshold.
Commission with decelerator = Standard commission × Decelerator factor
Scenario: An Account Executive has the following terms:
Situation: The rep closes $350,000 (70% of quota)
Calculation without decelerator:
$350,000 × 10% = $35,000 in commission
Calculation with decelerator (0.5x below 80%):
$350,000 × 10% × 0.5 = $17,500 in commission
The decelerator reduces commission by $17,500 in this example.
Many companies use a tiered model with multiple levels:
Example with tiered model:
A rep closes $400,000 against a $500,000 quota (80% attainment).
Commission = $400,000 × 10% × 0.75 = $30,000
Without the decelerator, commission would have been $40,000.
Decelerators and accelerators are two sides of the same coin. They work together to create a dynamic commission structure:
Most modern commission structures use both mechanisms to create an S-curve where both underperformance and overperformance have clear consequences.
Lower compensation costs when sales are down: When sales decline, compensation costs decline proportionally. This protects the bottom line during tough periods.
Self-regulating team: Reps who consistently hit the decelerator zone will often self-select out. This reduces the need for difficult performance conversations.
Clear expectation setting: A decelerator communicates that quota isn't just a goal—it's an expectation.
Clear rules of engagement: When the decelerator is well-defined, reps know exactly what happens at different performance levels.
Motivation to hit minimum: The decelerator creates a natural milestone: first reach the threshold, then work toward full quota.
If quota is set too high, reps will experience the decelerator as punishment rather than a fair mechanism. This can lead to frustration, lower morale, and higher turnover.
When a rep realizes they can't hit quota, the decelerator can actually demotivate further. Why fight for 0.5x commission when you've already "lost"? This phenomenon is sometimes called "sandbagging"—saving deals for the next period.
Tiered decelerators require precise tracking and calculation. Without an automated system, errors can easily occur, creating distrust.
Overuse of decelerators can create a fear-based culture where reps focus on avoiding punishment rather than creating value.
Decelerators are most effective in the following situations:
1. Mature sales organizations with historical dataWhen you have solid knowledge of what an average rep can achieve, you can set fair thresholds.
2. High base salary in pay mixIf your pay mix is 70/30 or higher on the base side, a decelerator can help balance risk for the company.
3. Short sales cycles with high deal volumeIn transactional sales environments where reps have many opportunities to close deals, decelerators are more fair.
4. Combined with acceleratorsDecelerators work best as part of a symmetrical model where overperformance is also significantly rewarded.
New products or markets: When baseline performance is unknown, you risk punishing reps for factors outside their control.
Long sales cycles: In enterprise sales with 6-12 month cycles, a quarterly decelerator can be unfair.
Ramp periods: New hires should typically be exempt from decelerators during their first 3-6 months.
Already low morale: If the team is already struggling, a decelerator can make things worse.
Explain the logic behind the decelerator. Reps need to understand that it's about fairness and sustainability—not punishment.
The decelerator should only activate at a level that most reps can avoid. A threshold of 70-80% is typical.
A model that only punishes underperformance without rewarding overperformance will feel unfair.
Reps should be able to see where they stand relative to the threshold so they can adjust their efforts.
Evaluate whether the decelerator is hitting the right people and whether thresholds are fair based on market conditions.
Here's an example of a full commission structure for an Account Executive:
Base Terms:
Commission Tiers:
Scenario: Rep hits 75% of quota ($450,000)
Tier 1 (0-50%): $300,000 × 10% × 0.5 = $15,000
Tier 2 (50-75%): $150,000 × 10% × 0.75 = $11,250
Total commission: $26,250
Without the decelerator, commission would have been $45,000.
Different industries apply decelerators differently based on their sales dynamics:
Complex models with decelerators and accelerators require precise calculations. With Prowi, you can: