What is an OTE? On-Target Earnings (OTE) is the total compensation a salesperson earns when they achieve 100% of quota. It’s basically the sum of the base salary + variable salary, where the variable part is tied to a target or quota. OTE structures and amounts vary heavily by role OTE (AE, SDR, Enterprise, SaaS, […]
What Is A SPIF? A Guide to Short-Term Incentives
What is a SPIF? SPIF stands for Sales Performance Incentive Fund. A SPIF is a temporary, targeted sales incentive designed to motivate sales reps to focus on a specific goal, such as selling a new product, closing deals faster or increasing activity in a priority segment. Important: SPIFs are add-ons, not replacements, to base commission […]
What Is A Sales Commission? Definition, Examples & Formulas
TL;DR Sales commission is a variable payment paid to salespeople when they achieve predefined results (e.g., revenue, deals closed, margin). It aligns incentives with business goals and is typically calculated as a percentage or fixed amount on top of base salary. What is Sales Commission? Sales commission is a performance-based compensation component that rewards sales […]
Best Sales Commission Software 2026: The Complete Guide
TL;DR If you want accurate commission calculations, fewer spreadsheet errors, and scalable sales incentives, the best sales commission software today are Centify, CaptivateIQ, Xactly, Spiff, and Performio.For European / DACH companies, Centify stands out due to GDPR-native architecture, EU data residency, and true no-code setup – making it the strongest Excel replacement for SaaS and […]
Calculating Sales Commissions: Simple & Accurate
TL;DR If you want accurate sales commissions with minimal effort, use one clear formula per role, calculate from clean source data, and automate the math (not the logic). Start simple → only add complexity when the business truly needs it. The simplest reliable commission method (step by step) 1️⃣ Define one sales commission rule per […]
Automating Commission Accounting: The Complete Guide (2025)
TL;DR 1. Definitions Commission automation means:Replacing manual, spreadsheet-based commission calculation with an automated system that imports data, applies rules, calculates payouts, and logs all decisions—without human intervention. Why it matters 2. Common Problems with Manual Commission Accounting Problem Impact Excel fragility Broken formulas, version confusion, non-auditable Opaque rules Sales distrusts numbers; constant disputes Manual data […]
Excel vs. Sales Commission Automation: Why You Must Switch
1. TL;DR – Why Excel Costs More Than You Think Excel feels free, until it isn’t.For sales commissions, spreadsheets introduce hidden costs that compound as your team grows: Switching from Excel to automated commission software reduces errors, increases transparency, and shortens payout cycles from 10–15 days → 1–2 days. If your sales organisation has more […]
Sales Commission Management: The Complete Guide (2025)
1. TL;DR – What Commission Management Is & Why It Matters Sales commission management is the process of planning, calculating, tracking, and paying variable compensation for sales teams.In 2025, companies move away from Excel because: Modern commission management platforms (like Centify) automate calculations, ensure accuracy, and give reps and finance teams full visibility. If your […]
Who should own Sales Commissions? Finance or Sales Ops?
In growing companies, one question tends to linger in the background until it suddenly becomes urgent: Who should manage sales commissions? Get it right, and your sales engine hums. Get it wrong, and you’re fielding complaints and risking missed targets. There’s no universal answer, but the right decision depends on your stage of growth and […]
How Balanced Sales Territories Can Unlock Higher Performance
Territory design shapes outcomes more than most sales leaders realize. When territories are uneven, reps get stretched or sidelined and quotas feel arbitrary. Balanced territories create a fair playing field that links effort to earnings. It raises morale and steadies growth. Below is a practical path to balanced design that your team can implement without […]