Incitamenter

Ramp plans for new sales reps: targets and guaranteed commission

Ramped quota, guaranteed commission or a recoverable draw? Three ramp models worked through in DKK, how to switch plans and the Danish rules.

Short answer: A ramp plan gives new sales reps a reduced quota, for example 25%, 50% and 75% of full quota in the first three months and full quota from month 4. During the ramp you protect the rep's pay in one of three ways: commission based on attainment of the ramped quota, a guaranteed commission that does not have to be paid back, or a recoverable draw that is offset against later commission. In Denmark, an advance on commission can only be offset against pay the rep is owed (section 9(2) of the Salaried Employees Act), so for most companies a guarantee is the simplest option.

This guide shows how to build a ramp plan with a reduced quota, what the three pay models cost in a worked example, how to switch to the full plan, and what Danish rules mean for the plan if you employ reps in Denmark.

What is a ramp period?

The ramp period is the time a new rep gets to learn the product and market and build pipeline before full quota applies. It is not the same as a probation period. Probation is about whether the employment continues. The ramp is about quota and pay. See the definition of ramp period in our glossary.

How long should it be? At least as long as your sales cycle plus the time it takes to build pipeline. Bridge Group reports averages of 6.2 months for account executives and 3.0 months for SDRs, mainly at US B2B companies (Bridge Group, 2026; Bridge Group, 2025).

Ramped quota by month

The most common ramp curve is 25%, 50%, 75% and 100%. In our example, an account executive has a full quota of DKK 250,000 a month:

MonthShare of full quotaQuota
125%DKK 62,500
250%DKK 125,000
375%DKK 187,500
4 onwards100%DKK 250,000

With a long sales cycle, the curve can start with one or two months without quota, or be stretched over 6 months. The ramped quota also belongs in your overall quota plan, or the lost capacity will be missing from the budget. Our sales quota planning template builds the ramp in automatically.

Three ways to pay during the ramp

The rep in the example has OTE of DKK 600,000 a year with a 60/40 pay mix: DKK 30,000 base salary and DKK 20,000 variable pay a month at 100%. Full annual quota is DKK 3,000,000, so the rate is 20,000 ÷ 250,000 = 8%. During the ramp, you can pay the variable part in three ways:

  • A. Ramped targets: Commission is based on attainment of the ramped quota. When the rep hits 100% of the reduced quota, they get the full DKK 20,000 in variable pay. The effective rate is therefore higher during the ramp.
  • B. Guaranteed commission: The rep earns 8% of sales, but at least a guaranteed amount, here DKK 20,000, 15,000 and 10,000 in the first three months. The guarantee is non-recoverable: it is never paid back.
  • C. Recoverable draw: The rep gets at least DKK 20,000 a month in the first three months, but the gap between the draw and the commission earned is an advance, offset against later commission. In the example, at most half of each month's commission is withheld. See draw against commission and the glossary entry on commission draws.

Worked example: six months under the three models

The rep sells DKK 40,000 in month 1 and reaches full productivity in month 5. The table shows variable pay under each model. The DKK 30,000 base salary comes on top:

MonthSalesQuotaAttainmentA. Ramped targetsB. GuaranteeC. Draw paidC. Draw balance
1DKK 40,000DKK 62,50064%DKK 12,800DKK 20,000DKK 20,000DKK 16,800
2DKK 100,000DKK 125,00080%DKK 16,000DKK 15,000DKK 20,000DKK 28,800
3DKK 170,000DKK 187,50090.7%DKK 18,133DKK 13,600DKK 20,000DKK 35,200
4DKK 230,000DKK 250,00092%DKK 18,400DKK 18,400DKK 9,200DKK 26,000
5DKK 260,000DKK 250,000104%DKK 20,800DKK 20,800DKK 10,400DKK 15,600
6DKK 250,000DKK 250,000100%DKK 20,000DKK 20,000DKK 10,000DKK 5,600
TotalDKK 1,050,000DKK 106,133DKK 107,800DKK 89,600DKK 5,600

How to read the table:

  • A. Ramped targets reward progress. In month 1, 64% of quota gives 64% of DKK 20,000 = DKK 12,800. The effective rate is 32% in month 1, 16% in month 2 and 10.7% in month 3 before it settles at 8%. Cap ramp-month payouts at 100% of target variable pay, so one large deal that was already in motion does not trigger an outsized payout.
  • B. Guaranteed commission gives the rep peace of mind early on. In month 1, commission is DKK 3,200, but the rep gets the DKK 20,000 guarantee. From month 3, commission exceeds the guarantee. The guarantee cost DKK 23,800 more than the DKK 84,000 of commission actually earned.
  • C. Recoverable draw looks cheapest, but the rep is paid less in months 4-6, just as they reach full quota. Total pay drops from DKK 50,000 in month 3 to DKK 39,200 in month 4. After six months the rep still owes DKK 5,600.

We recommend A or B for most new reps. A draw shifts the risk onto the rep and can demotivate them just as they start to succeed.

Switching to the full plan

  • Write down the end date. Agree that the ramp ends on a fixed date, for example after month 3, and that the full plan applies from then. The switch then does not feel like a pay cut.
  • Switch at the start of a period. If commission is settled quarterly, start the full plan at the beginning of a quarter. Otherwise you have to pro-rate the quarterly quota.
  • Agree what happens to pipeline. State that a deal follows the rules for the month in which it counts, for example by invoice date.
  • Close out draws. If you use a draw, state how a remaining balance is offset and what happens if the rep leaves.
  • Extend only in writing. If the rep has been ill or started in the summer holidays, extending the ramp can make sense. Agree it in writing before the original period ends.

Experienced reps vs junior reps

Experienced rep from the same industryJunior or new to the industry
LengthShorter, for example 3 monthsLonger, for example 6 months or more
Quota curveStarts higher, for example 50% in month 1Starts with activity targets and a low quota
Pay during the rampRamped targets or a short guaranteeA guarantee that steps down over the whole period
Measured onPipeline and closed dealsMeetings, activity and pipeline, then closed deals

For SDRs, the ramp is about meetings rather than sales, so the ramped quota should be a reduced number of qualified meetings. See the examples in our SDR commission plan and account executive commission plan. If you are hiring your very first rep, read our guide to hiring your first salesperson.

Danish rules on ramps and draws

If you employ reps in Denmark, these points apply. Brief and general, not legal advice. Check your collective agreement and employment contract, and ask your lawyer if in doubt:

  • Put the ramp in the agreement. Pay, allowances, other pay components and payment intervals must be stated in writing (section 3(2)(10) of the Danish Employment Contracts Act, ansættelsesbevisloven). That includes quota, guarantee and end date during the ramp. Use our commission agreement template.
  • A draw can only be offset against pay. Under section 9(2) of the Danish Salaried Employees Act (funktionærloven), an advance on commission can only be covered by the pay the employee is owed. If the rep leaves with a balance like the DKK 5,600 in the example, you can offset it against final salary and commission, but a remaining amount generally cannot be claimed back. Most employed reps are covered by the Act when they work in sales more than 8 hours a week (section 1).
  • A guarantee is pay. Guaranteed commission is part of pay, which can matter for holiday pay, pension and sick pay. During sickness, pay must include the commission the rep would presumably have earned (section 9(3)). Agree how the guarantee counts, and confirm it with your payroll provider.
  • Probation is something else. If the rep is employed on probation and the employment does not last beyond 3 months, the employer can give notice of at least 14 days (section 2(5)). That does not change the ramp rules on quota and pay.
  • Changes need notice. If the end date is in the agreement, switching to the full plan is not a change. Shortening the ramp or removing the guarantee along the way can be a material change that requires notice.

Outside Denmark, the rules on advances and clawbacks differ, so check locally. For clawbacks of commission already paid, see our guide to commission clawbacks.

Common mistakes

  • Full quota from day one, leaving the new rep without commission for months.
  • A recoverable draw without a clear rule for how much is offset each month.
  • No end date, so nobody knows when the full plan applies.
  • Ramped targets without a cap, so a single large deal in month 1 triggers a very high payout.
  • The ramp is missing from the budget. See what it does to payback in our guide to how much revenue a salesperson should bring in.

Prowi and ramp periods

New reps want to see how they are doing from the first month. With Prowi, commission is calculated live from your CRM and the rep follows their earnings in the app. When the period closes, the statement is approved and passed on to payroll. To work through your own ramp, use the sales quota calculator in our calculators. To check the whole plan, use our free commission plan health check. Book a demo if you want to see your plan set up.

Frequently asked questions

What is a ramp plan for sales reps?

A plan for a new rep's first months with a reduced quota and often protected pay while they learn the product and build pipeline. A typical curve is 25%, 50% and 75% of full quota in the first three months.

What is the difference between guaranteed commission and a draw?

Guaranteed commission is never paid back. A recoverable draw is offset against commission the rep earns later. In Denmark, an advance on commission can only be covered by what the rep is owed in salary and commission (section 9(2) of the Salaried Employees Act).

Can an employer recover a draw if the rep leaves?

In Denmark, only by offsetting it against salary and commission the rep is owed. A remaining balance generally cannot be claimed back as an ordinary debt. Ask your lawyer if you have a specific case.

How long should a sales ramp period be?

At least as long as your sales cycle plus the time to build pipeline. Bridge Group reports averages of 6.2 months for account executives and 3.0 months for SDRs, mainly at US companies.

Do new reps earn commission during the ramp?

Yes, in most plans. With ramped targets, commission is based on attainment of the reduced quota. With a guarantee, the rep gets the higher of commission and the guarantee.

Sources

This article is general information, not legal advice. The worked examples are illustrative.