A Multiplier is a factor that adjusts commission based on performance. Instead of a flat rate, this means that the seller's results can be multiplied when certain levels of target completion are reached.
It makes commission more dynamic and motivating, because extraordinary effort triggers a disproportionately high reward.
A simple example:
If a seller closes deals for DKK 800,000 (80% attainment), 5% × 800,000 × 1.0 = DKK 40,000 in commission is triggered.
If the same seller hits 1,200,000 kroner (120 percent attainment), the calculation will be 5% × 1,200,000 × 1.5 = 90,000 kroner.
The difference is clear: The multiplier rewards top performers far more than baseline.
The advantage for the company is that multipliers can be targeted to specific KPIs or levels of attainment, so that efforts are directed towards what creates the most value. For the seller, it is a clear signal that exceptional performance brings extraordinary reward.
In short, a multiplier makes commission more flexible and creates a strong incentive to exceed expectations.