Sales Commission — clear definition, examples, and how it’s calculated

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 […]

Top Software for Managing Sales Commissions Effectively (2026)

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 […]

Simplest way to calculate sales commissions accurately

TL;DR If you want accurate 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 commission rule per role Avoid […]

Who should own the sales commission process: Finance or Sales Ops?

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 […]

SPIF: Short Term Incentive Fund

The Modern Guide to SPIFs: Short-Term Incentives That Actually Work

Sales leaders have been using SPIFs for decades, yet many still struggle to get them right.Some programs spark energy and results. Others waste money and create lasting headaches. The difference comes down to strategy, design, and timing. This guide explains how high-performing sales organizations approach SPIFs today – based on real-world practice. What a SPIF […]

The Power Of Sales Compensation Analytics

The Power of Sales Compensation Analytics

Incentives are supposed to drive results. But in many organizations, sales compensation analytics become a monthly ritual of checking dashboards, nodding at charts, and moving on. Valuable data gets collected, yet rarely acted upon in a meaningful way. The truth is, sales comp analytics aren’t failing because they’re too complex. They’re failing because they’re being […]

Driving Growth with Sales Commissions

Driving Growth with Sales Commissions: Transforming a Cost Center into a Revenue Engine

For most growth-focused businesses, sales commissions represent a significant portion of total revenue outlay. In fact, in many organizations, commissions can consume up to 20% of newly acquired revenue. This figure, while hefty, is often considered a necessary cost of doing business—an inevitable line item on the P&L. But this mindset undersells the strategic power […]