Split commissions have become increasingly common when multiple reps work together to close the same deal. SDRs, AEs, AMs, overlay roles, and channel partners collaborate across various stages of the sales process to secure business. Although collaborative selling increases close rates, shortens sales cycles, drives product-led growth, and improves customer satisfaction, it can create conflicts over shared quota credit and fair compensation.
Without proper systems, tracking who gets what share becomes complex and prone to disputes. Spreadsheets, manual calculations, and unclear payout rules often lead to errors, delays, and frustration for both reps and finance teams.
In this blog, we’ll share best practices for effectively managing and tracking split commissions between sales reps, how to avoid common pitfalls, and why QuotaPath is the best solution.
Design, track, and manage variable incentives with QuotaPath. Give your RevOps, finance, and sales teams transparency into sales compensation.
Talk to SalesTracking Split Commissions
When multiple people contribute to closing a deal, defining who earns what portion of the payout becomes essential to maintaining trust and motivation.
Shared commission structures explained
A shared commission structure, also known as a split commission, occurs when two or more reps share credit and payout for the same deal. Instead of one seller receiving the full commission, the total earnings are divided based on each person’s role or contribution.
Shared commissions are common in collaborative sales motions such as co-selling, SDR-sourced and AE-closed deals, account manager and AE partnerships, or territory handoffs between reps. These structures ensure everyone who helps advance or close business receives fair recognition for their impact.
When designed well, shared commissions encourage teamwork, transparency, and fairness across the revenue organization. However, when tracked manually, such as in spreadsheets, split commissions can create disputes, confusion, or shadow accounting as reps attempt to verify their own numbers. That’s why clear rules and automated tracking systems are crucial for accurately managing deal splits and keeping teams aligned.
How to Set Up Split Commissions the Right Way
Follow these three steps to create a clearly defined and accurately tracked shared incentive program with confidence.
Step 1: Decide How Credit Is Split
Start by determining credit allocation among contributors. Popular options for deal splits include percent-based splits and fixed-dollar splits. A percent-based split awards each rep a designated percentage of the total commission. By contrast, a fixed-dollar model rewards each participant with a set amount regardless of the deal’s value.
After deciding how to split the commission, designate who receives the primary or assist credit. Primary credit usually goes to the rep who closes the deal, while assist credit recognizes supporting roles. Finally, determine how the split affects quota retirement by specifying the amount of quota credit each participant will receive. Aligning payout logic and quota credit ensures accurate performance tracking and reinforces fairness across the sales team.
Step 2: Set Eligibility and Timing (Bookings vs. Cash)
Establishing commission payout rules tied to the deal stage and cash collection is crucial when setting up split commissions. Tying shared commissions to the deal stage clearly defines what each team member must do to qualify for their portion of the incentive pay. Rules based on cash collection determine when commission is paid, either when the deal is closed or when a cash payment is received. Clearly defining these rules prevents confusion and disputes while building trust.
Step 3: Capture Splits in Your Plan, Not in Spreadsheets
Using spreadsheets as a commission tracker can lead to errors due to manual data entry, incorrect formulas, and increasingly complex plans. This leads to mistrust when numbers don’t align. Avoid these issues by automating split commission tracking with an incentive compensation management platform like QuotaPath. QuotaPath supports deal splits in complex plans, ensuring every contributor’s share is accurate, transparent, and automatically updated.
Tracking Splits in QuotaPath (from CRM to payout)
QuotaPath makes it easy to track split commissions between sales reps by connecting every step of the process, from deal data to payout approvals, in one transparent workflow. Instead of managing multiple spreadsheets or systems, teams can view, calculate, and verify earnings in real time, ensuring accuracy and alignment across Sales, RevOps, and Finance.
Sync Deals from Salesforce or HubSpot Instantly
QuotaPath connects directly to Salesforce or HubSpot, pulling in deal data, like closed-won amounts, owner details, and contract terms, without the need for manual uploads or spreadsheets. With accurate CRM data and split ownership fields, teams can trust that the right numbers flow seamlessly into sales commission calculations, ensuring current earnings and accurate payouts.
Model and Automate Deal Splits in the Plan Builder
QuotaPath’s AI-powered plan builder streamlines the creation and automation of compensation plans that include deal splits. You can quickly and easily model variants in Plan Builder to visualize the plan before plan rollout, ensuring accuracy. Drag and drop components to build or modify plan structures, model deal split scenarios, and instantly preview how changes affect payouts. Testing these variants before rollout ensures accuracy and saves time.
Approve, Audit, and Schedule Payouts with Confidence
QuotaPath’s customizable approval workflows ensure accuracy and transparency at every step. Managers and reps can review earnings for accuracy before payouts are scheduled, preventing disputes, saving time, and building trust.
Avoid Errors and Disputes on Split Commissions
Follow these best practices to maintain transparency, prevent disputes, and protect audit trails across split payouts.
One source of truth with deal breakdowns
Sales dashboards in QuotaPath provide transparent deal views, allowing each rep to see how and why they earned commissions, reducing misunderstandings while boosting trust and motivation.
Resolve disputes fast with in-app tools
In-app communication tools, such as QuotaPath’s Deal Flagging, enable reps to raise potential issues directly within the platform, creating a clear record for quick dispute resolution and preserving rep confidence.
Lock past periods to protect audit trails
Freeze finalized payout periods to preserve accurate records and maintain audit trails across split payouts. Locking past periods prevents retroactive changes, ensuring that historical earnings remain consistent with approved deals and protecting data integrity for audits and compliance purposes.
Closing the Loop on Split Commissions
With automation, it’s easy to finalize and send commissions to payroll confidently.
Finalize approval with confidence
Confidently finalize payout approvals in QuotaPath, knowing every deal, split, and calculation has been validated throughout the workflow. Transparent review and approval processes ensure commissions are accurate, compliant, and ready for processing.
Push commissions straight to payroll with Rippling integration
Once commissions are approved, send them directly to payroll in just a few clicks with QuotaPath’s Rippling integration—no spreadsheets or manual reformatting required.
Why QuotaPath for Split Commissions
QuotaPath makes it easy to track split commissions between sales reps. With transparency at every step and compensation automation, plus seamless CRM and payroll integrations, QuotaPath eliminates manual errors and confusion from tracking shared commission structures. The result is faster, more accurate payouts, higher trust across teams, and motivated reps who understand their earnings calculations.
Ready to simplify split commissions? Try QuotaPath’s automated deal split tracking. Book a demo today.
