Commission & quota math
Know what a plan pays before you sign it, then work backward from the number to your weekly activity.
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How the commission math works
Variable pay is earned in a straight line up to 100% of quota. Above quota, each dollar earns the base rate times the accelerator. OTE (on-target earnings) is base plus variable at 100%. Real plans often add caps, tiers, draws and clawbacks, so read the plan document before you sign.
Working backward to activity
Start with what’s left to book, divide by your average deal size to get deals, then divide by each conversion rate to get opportunities, meetings, conversations and dials. Spread over the weeks left, that’s your weekly activity target. Replace the default rates with your own after a few months. The guide to your first 90 days in sales covers the habits that make the numbers.
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