Most B2B sales commission rates are often cited as falling between 5% to 10% of a deal’s value. But stopping at a single percentage is a mistake. Your commission strategy is more than a rate; it is a working part of your go-to-market engine.
If you fail to tie pay directly to performance, even generous plans will not prevent missed quotas or rising attrition. When compensation and execution drift apart, you burn time and cash, lose your best reps, and damage forecast accuracy.
This guide shows you how to design, operate, and pay a complete sales compensation plan that reps trust, finance can forecast, and leaders can scale. We cover key benchmarks, common commission structures, and the operational gaps that cause even solid plans to falter.
What is a Good Commission Rate for B2B Sales?
Averages provide a baseline, but a “good” commission rate fits your business. The right number depends on your stage, product, sales motion, and cash model. Ignore those variables, and you end up with a plan that costs too much or fails to keep your top performers.
A competitive, well-structured plan helps you keep talent. One survey reports that 64% of sales professionals would leave their role for higher pay. To design a plan that attracts and retains performers, consider these five factors:
- Company Stage: Startups often offer higher commission rates or equity to offset lower base salaries and higher risk. Established enterprises with strong brand recognition may offer a more conservative rate, and provide a higher, more stable base salary.
- Product or Service Complexity: A simple, transactional product with a short sales cycle warrants a lower commission rate. A complex, high-value solution with a multi-month sales cycle justifies a higher rate to reward the effort involved.
- Deal Size and Sales Cycle Length: Enterprise deals that take quarters to close often use different structures or rates than smaller, high-velocity deals. Align compensation with cash flow and rep effort.
- Role of the Sales Rep: Tie pay to a person’s role in the motion. An SDR focused on booking meetings should not be paid like an AE closing new business, or an Account Manager focused on renewals and expansion.
- On-Target Earnings (OTE) Mix: The ratio of base to variable matters. A common split is 50/50, but you can shift to 60/40 or 40/60 based on the behavior you want. A higher variable portion rewards pushing for new deals, and a higher base provides stability.
Common B2B Sales Commission Structures (With Examples)
The structure of your plan is as important as the rate. Each model nudges different behaviors, so choose the one that supports your near-term goals, such as rapid new-logo growth or healthier margins.
Straight Commission
This high-risk, high-reward model pays only on commission. It maximizes urgency to close deals, but offers no financial safety net, which can drive churn and a focus on quantity over quality.
- Who it is for: Early-stage startups with limited cash, or industries with very high deal values, like commercial real estate.
Base Salary + Commission
The most common structure in B2B. It balances stability with performance incentives, attracts a wider talent pool, and supports a sustainable sales culture.
- Who it is for: Most established B2B and SaaS companies seeking a blend of stability and motivation.
Tiered Commission
Rates increase once reps pass thresholds. For example, a rep earns 8% up to 100% of quota, then 12% on revenue beyond that target.
- Who it is for: Teams that want to reward overperformance and accelerate growth during key periods.
Gross Margin Commission
Commission is calculated on profit, not revenue. This discourages heavy discounting and aligns rep behavior with company margin goals.
- Who it is for: Businesses with variable deal profitability, such as manufacturing or professional services.
The most effective compensation plans use sales commission structures that reflect your primary GTM objective, whether that is new logo acquisition, profitability, or market expansion.
B2B Sales Commission Rate Benchmarks by Industry
Benchmarks help you calibrate, even though your business model should drive the final plan. Rates vary by recurring revenue, project-based work, and the importance of gross margin.
| Industry | Average Commission Rate |
|---|---|
| SaaS / Technology | 8% – 12% of Annual Contract Value (ACV) |
| Professional Services | 5% – 10% of Total Contract Value (TCV) |
| Manufacturing & Industrials | 2% – 7% of Gross Margin |
| Medical Devices | 7% – 15% of Sale Price |
SaaS or Technology: The recurring nature of SaaS often leads to higher commission rates. According to Salesforce, B2B technology commissions can range from 5% to 20% of total contract value, with a focus on securing longer terms. Building a successful SaaS sales commission plan means balancing incentives for new logos and expansion.
Professional Services or Consulting: Commissions are often tied to total contract value for a project or statement of work. Because profitability varies, some firms move to gross margin to ensure teams sell profitable engagements.
Manufacturing and Industrials: Physical goods typically have tighter margins. Plans often pay on gross margin rather than revenue to protect profitability and reduce discounting.
Benchmarks are a guide, not a rule. Use them to test competitiveness, then tune rates and structure to fit your model and goals.
The Hidden Disconnect: Why Great Commission Plans Fail
Many teams launch well-structured plans, then watch results stall. Quotas are missed, top reps leave, and trust in compensation erodes. The core issue is often the gap between plan design and day-to-day administration.
On The Go-to-Market Podcast, host Amy Cook and guest Pete Shelton called out a common mistake. Leaders set incentives to drive behavior, but underestimate the operational load to calculate, audit, and pay accurately. Revenue operations then pushes back when well-intended plans break data flows or processes. That friction slows the system and undermines trust.
This operational gap shows up in performance. Some roundups report that in 2024, only 25% of B2B sales reps hit quota. Our Fullcast 2025 Benchmarks Report found nearly 77% of sellers still missed quota, even with lowered targets.
When commission calculations are manual, slow, and opaque, trust drops and motivation fades. The financial and cultural cost of bad commission tracking is too high to ignore.
How to Build a Commission Plan That Drives Results
To make compensation work, connect strategy to payment. Move beyond spreadsheets and create one system for accurate data, transparent rules, and timely payouts.
Align with Your GTM Strategy
Do not design compensation in a vacuum. Tie commissions to territory design and quota allocation. If a rep’s quota is unattainable because the territory is unbalanced, no rate will fix it. Compensation should flow from your revenue plan.
Use a Quota Management Software to ensure quotas are fair, balanced, and linked to territory and capacity planning.
Ensure Data Accuracy
Trust starts with clean data. If reps question the data behind their pay, they will shadow account in spreadsheets, file disputes, and sell less. Pull all calculations from a single source of truth trusted by sales, finance, and operations.
Automate Calculations
Manual processing creates errors, delays, and disputes. Spreadsheets are brittle, hard to audit, and do not scale. Automation applies rules consistently, removes human error, and cuts admin time. By automating, firms like Jud Whidden Consulting cut commission processing time by 88% while achieving near 100% accuracy.
Avoid Common Pitfalls
Designing a commission plan is complex, and small mistakes can hurt morale and results. Learn the top common sales compensation mistakes to avoid.
Provide Real-Time Visibility
Reps should never guess their next commission check. Give them dashboards that show progress to goal and estimated earnings. Visibility builds ownership, keeps them focused on high-value work, and reduces disputes.
Model and Forecast
Before rollout, model the financial impact. A strong plan motivates reps and protects the budget. Use scenario modeling to forecast total commission cost at different performance levels, so there are no surprises.
Make Your Commission Plan a Performance Lever
Designing a commission plan is not an accounting exercise, it is a core operating choice. The goal is not just to pay correctly. You want one system where planning, performance, and pay work together. When you disconnect your GTM strategy from compensation, even competitive rates will not produce reliable results.
A clear plan, supported by a single workflow, reduces disputes, builds trust, and keeps everyone focused on hitting the number. When you link your plan to pay, you create a reliable path to consistent revenue and make compensation a true driver of performance.
Ready to eliminate spreadsheets and reduce commission disputes? See how Fullcast Pay automates the entire lifecycle from plan to pay.
FAQ
1. What is the typical commission rate for B2B sales?
Most B2B sales commission rates fall between 8% and 12% of a deal’s value. However, this figure should serve as a starting point rather than a final target. The rate itself is just one component of a broader compensation strategy that must align with your company’s specific goals.
2. Why do sales professionals leave their jobs?
Compensation is a primary driver of sales attrition. Many sales professionals will leave their current position for higher pay, making a competitive and well-structured commission plan essential for retaining top talent.
3. How does commission structure affect sales behavior?
The structure of your commission plan directly influences the sales behaviors your team prioritizes. The most effective compensation plans use structures that reflect your company’s primary go-to-market objective, whether that’s acquiring new customers, maximizing profitability, or expanding into new markets.
4. Are SaaS commission rates different from other industries?
Yes. Technology and SaaS companies often offer higher commission rates due to the recurring revenue model and the emphasis on securing long-term contracts. The recurring nature of SaaS revenue typically justifies elevated commission percentages compared to traditional one-time sales.
5. Why do commission plans fail even when they’re well designed?
The breakdown usually happens in execution, not design. The administrative complexity of calculating and paying commissions accurately creates a gap between what sales leaders intend and what happens operationally. Manual processes make it difficult to maintain accuracy and consistency.
6. What happens when commission calculations are inaccurate?
Inaccurate or delayed commission payments erode trust between sales teams and management. When the process for calculating and paying commissions is manual, slow, and opaque, it undermines the motivational power of even the best-designed plan.
7. How does automation improve commission management?
Automating commission calculations eliminates manual errors and dramatically reduces the time spent on administrative tasks. Automation ensures that calculations are accurate, consistent, and transparent, which builds trust and allows the compensation plan to function as intended.
8. What does low quota attainment indicate about commission plans?
When a small fraction of sales representatives hit their quota, it signals a systemic problem with the compensation plan. This disconnect indicates that either the plan design or its execution is fundamentally misaligned with what is achievable in the market.
