At-Risk Pay
At-risk pay is another way of referring to performance-based compensation plans used to motivate employees.Continue Reading
Sales Compensation
Glossary
Welcome to Spiff’s Sales Compensation Glossary– your new go-to resource for all things related to sales commission and incentive compensation.
Average Deal Size
Average deal size, sometimes called average order size, is a key metric organizations use to measure the average value of a company’s deals or sales transactions.Continue Reading
Bonus
A bonus, or performance bonus, is a form of additional compensation given to employees over and above their base salary to recognize and reward their hard work…Continue Reading
Commission Cap
Capped commission– or a commission cap–means the compensation plan in question has a limit on the amount of commission a sales rep can earn during any given pay period.Continue Reading
Decelerator
A sales decelerator, sometimes called a commission decelerator or de-accelerator, refers to a mechanism or policy that reduces the rate at which salespeople earn commission.Continue Reading
Incentive Compensation
Incentive compensation is a form of payment that rewards employees, often sales reps, for achieving specific goals or objectives.Continue Reading
Non-Recoverable Draw
A non-recoverable draw, often called a non-recoverable draw against commission, is a common element of sales commission plans.Continue Reading
On-Target Earnings (OTE)
On-target earnings (OTE), sometimes referred to as on-track earnings, is a term used in sales or commission-earning roles that refers to the total compensation an employee will receive if they hit their goals or targets.Continue Reading
Pay Mix
In compensation, pay mix is the combination of commission, salary, and bonus that makes up a sales reps’ total income.Continue Reading
Quota Attainment
Sales quota attainment is an important sales metric that shows how an individual sales rep, sales team, or sales organization performed against the quota given to them during a set time period.Continue Reading
Recoverable Draw
There are two different types of sales commission draws– recoverable and non-recoverable. A recoverable draw against commission is money paid to a sales rep paid from the future commission they earn.Continue Reading
Sales Capacity Planning
Sales capacity planning is the process of identifying and forecasting the number and type of sales representatives needed to achieve a given revenue goal.Continue Reading
Shadow Accounting
Broadly speaking, the term shadow accounting refers to the practice of maintaining financial records and calculations in a separate system that lives outside any official sources of truth.Continue Reading
Tiered Commission Structure
A tiered commission structure is a type of sales commission structure that offers different commission rates for different levels of performance.Continue Reading
Total Target Compensation
In sales, total target compensation– sometimes called on target earnings– refers to the total amount of money a salesperson will bring home if they hit the milestones set for them.Continue Reading
Uncapped Commission
Uncapped commission means there is no limit to the amount of commission a sales rep can earn during any given pay period.Continue Reading
Uncapped Earnings Potential
The phrase uncapped earnings potential, or unlimited earning potential, refers to sales compensation plans that put no limit or cap on the amount of commission a sales rep can earn on top of their base salary.Continue Reading
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