Glossary

A tiered commission structure pays a higher commission percentage the more a rep sells. The goal of tiered commission structures is to incentivize core performing reps to become top reps, or in other words, get more out of the reps that are in the middle of the pack.

Tiered commissions are best for companies with great sales data and analytics, who are able to set accurate tiers that constantly keep reps motivated and pushing towards the next tiers. Tiers are a nightmare if not set properly.