Understanding Common Sales Commission Structures

Designing the right sales commission structure isn’t just about percentages and payouts, it’s about aligning incentives with performance across every step of the sales process. Too often, businesses apply one-size-fits-all plans and end up with underperforming teams or unsustainable costs.

At Employmate, we’ve worked with businesses across the globe to help find sustainable commission models that attract top talent, drive the right behaviours, and scale with growth. Below, we break down the best-practice structures for each sales role, common mistakes businesses make, and how to avoid them.

Lead Generation Specialists & Appointment Setters

Focus: Volume of qualified leads and booked meetings
Typical Structure: Base + flat rate per qualified lead/appointment, sometimes tied to eventual conversions

Employmate Insight:

• These roles are the engine of your pipeline. Without stability, turnover skyrockets.

• Too many businesses over-incentivise volume at the expense of quality.

Best Practices:

• Higher base (70–80%) for stability

• Flat rate bonuses for qualified leads

• Conversion-based bonuses (extra if leads become customers)

• Quality safeguards (to stop “just booking meetings” with poor-fit leads)
  
  

Inside Sales Representatives

Focus: Closing smaller deals via phone/digital channels
Typical Structure: Base + tiered commission

Employmate Insight:

• Shorter cycles need quick motivators.

• We often see underpaying commission here, which limits performance in high-volume environments.

Example:

• 60–70% base

• 5–12% commission

• Tiered accelerators once quotas are hit

• Activity bonuses for calls, demos, or proposals
  
  

Field Sales Representatives

Focus: Territory management and in-person selling
Typical Structure: Base + commission + territory performance

Employmate Insight:

• Relationship-driven roles often get “flat” plans, but structured territory and acquisition bonuses work better long term.

Example:

• 65–75% base

• 4–10% commission

• Bonuses for new accounts or exceeding territory growth targets
  
  

Business Development Managers (BDMs)

Focus: Strategic partnerships, channel sales, expansion
Typical Structure: Base + commission + strategic bonuses

Employmate Insight:

• BDMs are builders, not just closers. Plans should reflect long cycles and multi-stakeholder influence.

Example:

• 70–80% base

• 3–8% commission

• Bonuses for partnerships, market entry, or long-term accounts
  
  

Account Managers

Focus: Growing existing accounts and retention
Typical Structure: Base + account growth commission + retention bonuses

Employmate Insight:

• Too often, account managers are paid only for growth, not retention. Both are equally critical.

Example:

• 70–80% base

• Commission on account growth

• Retention bonuses

• Upsell/cross-sell incentives
  
  

Enterprise/Key Account Managers

Focus: High-value, complex, long-cycle accounts
Typical Structure: Higher base + lower percentage commission, but large absolute payouts

Employmate Insight:

• Enterprise roles demand patience. Without a strong base, companies risk turnover mid-cycle.

Example:

• 75–85% base

• 2–6% commission

• Deal milestone bonuses

• Long-term retention or performance bonuses
  
  

Key Takeaway

Commission must fit the role. Appointment setters thrive on stable base + activity bonuses, while enterprise managers need patience and strategic incentives. Misaligned plans either leave money on the table or drive the wrong behaviours.