Sales crediting is the systematic process of determining which salespeople receive commission credit for a closed deal. It establishes clear rules for who gets credited for a sale—especially in situations where multiple individuals or teams contributed to closing the deal.
In modern sales organizations, sales crediting has become one of the most complex and often contentious aspects of commission management. When sales processes involve account executives, sales development representatives, customer success managers, and technical specialists, defining fair crediting rules can be challenging.
Proper sales crediting is fundamental to a well-functioning sales organization for several reasons:
Motivation and engagement: When salespeople feel they're being fairly credited for their contributions, their motivation increases significantly. Conversely, unclear or unfair crediting can lead to frustration, conflicts, and high turnover.
Collaboration vs. competition: Crediting rules directly influence whether salespeople choose to collaborate or compete internally. With the right rules, you can foster teamwork without undermining individual performance.
Accurate performance measurement: To accurately assess salesperson effectiveness, crediting must reflect the actual value each person contributes to the sales process.
With full crediting, one salesperson receives 100% of the credit for a deal. This is the simplest model and works best in organizations with clearly defined territories and short sales cycles.
Example:
Split crediting divides credit among multiple contributing parties. This can happen either as full credit to all (multi-credit) or as percentage-based allocation.
Multi-credit example:
Percentage split example:
Overlay crediting is used for specialists or team leads who support the sales process without being the primary seller.
Example with Sales Engineer:
Crediting based on geographic region or account segment. The salesperson responsible for the territory receives credit, regardless of who actually facilitated the sale.
An SDR generates a qualified lead that an AE closes:
| Role | Crediting Rule | Deal Value | Credit | Commission Rate | Payout |
|---|---|---|---|---|---|
| SDR | 15% of closed value | $90,000 | $13,500 | 5% | $675 |
| AE | 100% of closed value | $90,000 | $90,000 | 8% | $7,200 |
An enterprise deal with three contributing salespeople:
| Role | Contribution | Credit Share | Credit (of $300K) | Commission |
|---|---|---|---|---|
| Lead AE | Primary contact | 60% | $180,000 | $14,400 |
| Support AE | Technical demo | 25% | $75,000 | $6,000 |
| Manager | Executive sponsor | 15% | $45,000 | $3,600 |
Sale through a partner with internal salesperson involved:
| Party | Crediting Rule | Deal Value | Credit/Commission |
|---|---|---|---|
| Partner | 20% partner margin | $60,000 | $12,000 |
| Partner Manager | 50% internal credit | $60,000 | $30,000 credit |
| AE (overlay) | 25% overlay | $60,000 | $15,000 credit |
Create a written crediting policy covering all scenarios. Include examples and edge cases.
Complex rules create confusion. Start simple and add complexity only when necessary.
Automate crediting with a commission management system like Prowi to eliminate manual errors and disputes.
Ensure all salespeople understand crediting rules before they start selling.
Evaluate crediting rules quarterly to ensure they still support business objectives.
Typically simple crediting with one salesperson per deal. Focus on speed and volume.
Often split crediting between SDR, AE, and specialists. Requires clear handoff rules.
Complex crediting with multiple stakeholders, overlay teams, and long sales cycles. Requires sophisticated crediting models.
Combination of external partner margin and internal crediting. Balance between motivating partners and internal teams.
Many organizations credit differently for new logos versus expansion deals:
For contracts spanning multiple years:
When deals include services:
Sales crediting is a critical component of any commission plan. By implementing clear, fair, and well-documented crediting rules, you can create an environment where salespeople are motivated to collaborate and perform their best.
The key to success is balancing simplicity with fairness—rules that are easy to understand but also recognize all contributions to a deal.
Want to automate your sales crediting? With Prowi, you can define complex crediting rules that automatically calculate commission for all involved parties. Book a demo to see how we can simplify your crediting process.