The short answer is it depends on you, your business, and your goals. There is no magic formula for commission planning. And while that might sound like a cop-out, I’ve been through it several times in previous companies and it’s invariably a test-driven process.

However, I can point you to a structure that best fits the type of business you run. I won’t cover them all, but I’ll outline five of the most common and why each might benefit you. You can then adapt the structure to the particular needs of your business.

Please remember this is a guide – a starting point – and you’ll need to tweak the variables through testing and feedback until you nail the perfect fit.