A Milestone Bonus is a bonus that is paid out when a specific milestone is reached. Unlike regular commission, which follows every single sale, milestone bonuses are linked to major goals or decisive outcomes.
An example would be that a seller gets a bonus when 1 million kroner in revenue has been reached in a quarter. If the bonus is set at 10,000 kroner at this milestone, it means:
Another model can be several milestones, for example:
The advantage of the milestone bonus is that it provides a clear and concrete goal to aim for. It can motivate sellers to push through the last sale to hit the limit, and it is often used as a supplement to commission to drive momentum in sales.
In short, a milestone bonus is a one-time reward that marks a special moment and can be crucial in generating extra energy and results in a sales organization.