Multiple rate bonus

A multiple rate bonus involves earning various bonus amounts determined by factors such as quota attainment, length of contract, deal size, and more. 

Examples of multiple rate bonuses:

  • Account executive earns a $200 bonus after selling 20 deals within the first quarter and another $400 for every deal after those initial 20 deals. 
  • Sales development rep earns $100 for every meeting set retroactively after setting 10 meetings. 
  • Sales manager receives a $1,000 bonus whenever someone on their team wins a 1-year deal and $2,000 for every 2-year contract someone on their team closes.

We like multiple rate bonuses because they are flexible to accommodate your business needs. You can also use multiple rate bonuses to curb selling behaviors. For instance, if you want to discourage discounting, you can set lower bonus rates for highly discounted deals. Reversely, if you want to drive multi-year contracts, you can reward your reps with a higher bonus rate for doing so. It also is great in rewarding over performance.

However, one thing to keep in mind is that multiple rate bonus plans do add complexity since you’re adding tiers, rates, and possibly payout schedules. 

For a compensation plan template of this structure, check out the Multiple Rate Bonus (Revenue) plan in Compensation Hub

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