Skip to main content
Back to Glossary
tiered commission structure

Tiered Commission Structure

What is a Tiered Commission Structure?

A tiered commission structure is a type of sales commission plan that offers different commission rates for different levels of performance. Higher levels of performance earn higher rates of commission. This structure is designed to motivate salespeople at every stage of a financial period and throughout every stage of a sales cycle by using higher rates of commission as the incentive for continued effort.

A tiered commission structure can be used in conjunction with base salary or on its own for commission-only reps.