Shared commission structure

A shared commission structure is a type of commission structure in which two or more sales reps share the commission for a sale. This type of structure is often used when two or more sales reps work together on a sale, or when a sale is made by a team of sales reps.

There are a few reasons why you might want to implement a shared commission structure. 

First, it can help to motivate sales reps to work together. If they know that they will share the commission for a sale, they will be more likely to help each other out and collaborate. Second, it can help to ensure that everyone on the sales team is rewarded for their contributions. If a sale is made by a team of sales reps, everyone on the team should be rewarded, not just the person who made the final sale.

An example of a shared commission structure is if a team of three sales reps makes a sale at a 30% commission rate, then each rep earns 10% commission on the sale. In this example, you will need to define who gets quota retirement, or maybe it’s a shared territory quota that they continuously work toward collectively. 

Here are some additional things to consider when implementing a shared commission structure:

  • The type of sales: Some types of sales are more conducive to shared commission structures than others. For example, shared commission structures work well for complex sales that require the cooperation of multiple sales reps.
  • The size of your sales team: Shared commission structures can be difficult to manage if you have a large sales team. If you have a small sales team, a shared commission structure may be easier to manage.
  • The culture of your company: Shared commission structures work best in companies with a collaborative culture. If your company has a competitive culture, a shared commission structure may not be as effective.

By considering these factors, you can choose the right type of shared commission structure for your company.

Can QuotaPath support shared commission structures? Yes, and our Member Details dashboard and individual Deal Details pages lay out precisely which reps share commissions on specific deals.

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