Only 25% of B2B salespeople hit their quota in 2024 according to Gartner. But what happens to salespeople who actually reach their target? Without accelerators, they have no financial incentive to continue closing deals. They will push deals to next quarter to ensure they hit next period's target too. This is called "sandbagging" and it costs companies millions.
80% of all compensation plans use accelerators according to Alexander Group, and there's a good reason. This guide covers everything about commission accelerators: from the different types and calculation methods to the psychology behind them, budgeting strategies, and the classic mistakes you need to avoid.
A commission accelerator is a compensation structure where the commission rate increases when the salesperson exceeds their target. When a salesperson passes their quota, the commission rate increases - for example from 8% to 12% - thereby creating an incentive for continued sales effort after targets are met.
Without accelerators, salespeople have no financial reason to close more deals once they've hit quota. In fact, they have an incentive to do the opposite: save deals for the next period to get a head start. This phenomenon is called sandbagging and is one of the most widespread problems in sales organizations according to Harvard Business Review.
With a well-designed accelerator structure, the incentive shifts. If a salesperson earns 1.5x or 2x commission on everything above quota, there's a clear financial gain from closing as many deals as possible in the current period.
80% of all compensation plans use accelerators according to industry data. Only 15% of software companies use single-tier accelerators - multi-tier structures are preferred in tech and SaaS. This shows that advanced accelerator structures have become standard in competitive industries.
There are several different ways to structure accelerators. Here are the most common:
With tiered accelerators, the commission rate increases at specific milestones. Example: 3% at 0-50% quota, 4% at 50-75%, 5% at 75-100%, and 7% above 100%. Most plans have 2-4 tiers, as more than 4 tiers becomes difficult for salespeople to remember and calculate.
With multiplier accelerators, a multiplier is applied to the base rate above quota. A 1.5x multiplier on a 10% base rate gives 15% above quota. Industry benchmark is 1.5x to 2x as standard, and anything above 3x is considered high-risk.
There are two types: Retroactive accelerators, where the higher rate applies to all revenue once the threshold is reached. And marginal accelerators, where the higher rate only applies to revenue above the threshold. Retroactive structures are riskier and can create "cliff" behavior where salespeople do everything to reach the threshold.
Kickers are fixed bonuses for strategic achievements, slightly different from rate-based accelerators. They're often used to reward specific behaviors like closing a certain product type or winning a new customer in a strategic segment.
Timing of accelerators is crucial for their effectiveness:
The first accelerator tier typically starts at 100-150% of quota attainment. For enterprise roles or senior salespeople, the threshold can be as low as 100-120% because deal sizes are larger and pipeline more unpredictable. For SMB salespeople, the threshold can be up to 150% because deal volume is higher and more predictable.
Industry benchmarks show: 1.5x multiplier is standard for the first accelerator tier. 2x multiplier is typically used for the second tier or particularly high performance. 3x or higher is unusual and requires strong budget control.
Accelerators work because of fundamental psychological principles:
According to Expectancy Theory, people are motivated by the expectation of reward. Accelerators create a clear, visible reward for extra effort. The salesperson can calculate exactly what the extra calls and meetings will yield in earnings.
When a salesperson hits quota, they're often in a good rhythm. Accelerators leverage this momentum by rewarding continued effort. Without accelerators, momentum is artificially stopped.
People are more motivated by avoiding losses than achieving gains. When a salesperson knows they're "losing" higher commission by saving deals, they're more likely to close now.
The most important factor is that salespeople can see and understand the incentive. If the accelerator structure is too complex to calculate mentally, it loses much of its motivating effect.
Here are concrete examples of how accelerators work in practice:
A salesperson has a quota of $140,000 and a base commission of 10%. The structure is: 10% at 0-100% quota, 15% at 101-125% quota, 20% at 126%+ quota.
If the salesperson reaches 150% of quota ($210,000), the calculation looks like this: First $140,000 at 10% yields $14,000. The next $35,000 at 15% yields $5,250. The final $35,000 at 20% yields $7,000. Total commission: $26,250.
The salesperson earns 87.5% more commission for 50% more revenue. That's a strong incentive to continue after quota.
To fund aggressive accelerators, you can use a decelerator below quota. The structure: 5% at 0-50% quota (0.5x decelerator), 10% at 51-100% quota, 15% at 101-125% quota, 20% at 126%+ quota.
The reduced commissions from underperformers "pay for" the higher rates to top performers. This creates a more balanced budget model.
For enterprise roles with larger deals and longer sales cycles: 8% at 0-100% quota, 12% at 101-120% quota, 16% at 121-150% quota, 12% at 151%+ quota.
Note the decelerator above 150%. It protects against "bluebird" deals where a salesperson randomly closes a huge deal that hits 300%+ of quota. You still reward overperformance but avoid budget explosions.
One of the biggest concerns with accelerators is the cost. Here are strategies to keep budget under control:
Always calculate the worst-case scenario: What happens if your top performer closes a deal 4x larger than normal? With a team of 10 salespeople and $140,000 quota each: Without accelerators at 100% attainment costs $140,000 in commission. With 1.5x accelerator costs approximately $166,600. With 2x accelerator costs approximately $179,200.
The extra 9-28% in commission costs can, however, drive significantly more revenue from motivated top performers.
Always include a policy for outlier deals. If a salesperson closes a "bluebird" and hits 400% of quota, you could end up paying 3x on something that "fell in their lap." A windfall rule (e.g., deals over 50-66% of annual target are treated differently) protects cash flow.
By including a decelerator (reduced rate below a threshold like 50-95% of quota), you can fund more aggressive accelerators. The savings from underperformers are used to reward top performers.
Caps help with budgeting but demotivate top performers according to Gartner research. Uncapped plans encourage overperformance but require strong forecasting. For non-sales roles, the rule of thumb is 2x acceleration capped at 150% payout.
Accelerators are only as good as your quotas. Here's the relationship:
Data shows that only 25% of B2B salespeople hit quota in 2024 - down from the traditional benchmark of 70% according to Forrester. If only a quarter of your salespeople can reach accelerators, they become demotivating instead of motivating.
Target 60-70% of salespeople hitting quota. If fewer than 50% can reach accelerators, they're ineffective. If quotas are too easy, accelerators become expensive.
In 2024, sales quotas increased by 37% compared to 2023. If you raise quotas without adjusting accelerator thresholds, you end up with accelerators no one can reach. The two must always be seen in context.
Decelerators are the opposite of accelerators - reduced rates below certain thresholds:
Below 50-95% quota attainment (typical threshold: 50%). At very high performance levels (above 150-200%) to prevent windfall. When quotas are easily attainable, and you want to incentivize overperformance.
Example: 0.5x multiplier for 0-50% attainment. This effectively reduces commission for underperformers and creates budget for more aggressive accelerators above quota.
Punitive decelerators can encourage sandbagging. Salespeople save deals for periods when they're sure to hit quota. Balance protection with fairness, and communicate the rationale clearly.
Sandbagging is when salespeople save deals for the next period. Here are prevention strategies:
They've already hit quota and are saving deals for a head start. They want to avoid hitting a cap in the current period. They want to smooth income and performance metrics for reviews.
Remove or soften decelerators. Harsh penalties for missing quota encourage saving deals for "safe" periods. Remove commission caps. No ceiling means no reason to defer revenue.
Use year-to-date performance rules and evaluate on rolling periods, not just the current quarter. Make accelerators attractive enough. If 120% earns significantly more than 100%, salespeople push to close now.
Here are the most common mistakes in accelerator design:
Overly complex structures: More than 4 tiers becomes difficult to remember. Keep it simple, or you lose the motivating effect.
Retroactive structures without safeguards: When hitting a threshold triggers higher rates on ALL previous revenue, salespeople will do anything, including bad deals, to cross the line.
No windfall policy: A bluebird deal can blow your compensation budget. Always define how deals over 50% of annual target are treated.
Flat-rate commission without accelerators: Provides no incentive for overperformance and encourages sandbagging.
Overly aggressive accelerators above 3x: Creates income volatility and can encourage unhealthy behavior. Also causes budget unpredictability.
Quotas set without data: 87% of sales leaders set targets without a fixed method. Use historical data, market growth insights, and seasonality.
No worst-case modeling: Always calculate: "What happens if our top performer closes a deal 4x larger than normal?"
Ignoring the quota-accelerator relationship: Raised quotas by 37% (as in 2024) without adjusting accelerator thresholds results in accelerators no one can reach.
Creating sandbagging incentives: Very generous accelerators combined with punitive decelerators encourage gaming the system.
Capping commission for top performers: Caps demotivate your best people and can drive them to competitors. If budgeting is a concern, use decelerators at very high attainment levels instead.
Changing plans mid-year: Erodes trust and can create legal issues in European employment contexts.
Here's a practical checklist for implementing accelerators:
What is your current quota attainment? If below 50% hit quota, accelerators are irrelevant until quotas are adjusted.
What do you want to achieve? More overperformance? Less sandbagging? Better retention of top performers? The goals shape the design.
Tiered, multiplier, or hybrid? How many tiers? Keep it under 4 for simplicity.
When does the accelerator start? 100%? 110%? Match the threshold to your sales model and deal sizes.
Calculate costs at different attainment distributions. What does it cost if 20% reach 150%? What if one reaches 300%?
Windfall policy for outlier deals. Possibly a decelerator at very high attainment. Clear rules for deal timing.
Salespeople must be able to calculate their commission mentally. If they can't, the structure is too complex.
Real-time visibility into performance and expected commission. Without visibility, accelerators lose much of their motivating effect.
Well-designed commission accelerators are one of the most effective tools for driving overperformance in sales organizations. But they require careful balance between motivation and budget control.
Start by analyzing your current quota attainment. If fewer than 50% hit quota, accelerators are irrelevant until the fundamental problem is solved. Then design a simple, understandable structure that rewards overperformance without blowing the budget.
Book a demo with Prowi and experience how automated commission management can help you design, implement, and track accelerator structures that motivate your sales team to overperformance. We help companies create compensation plans that balance motivation with financial control.
Gartner: Sales Quota Attainment Survey 2024. Alexander Group: Sales Compensation Trends. Harvard Business Review: How Salespeople Game the System. Forrester Research: Quota Attainment Studies.