Commission Cost Report — Page 3

Commission rates vary by GTM motion and ACV, not just by company size.

Boards must actively oversee sales incentive plan design as strategic risk.

Federal law sets a floor; state laws where reps work demand written plans and fast payment.

Vague commission plans lose disputes because courts fill in the gaps in the rep's favor.

Lost pipeline during vacancy costs more than recruiting and training combined.

Clear compensation plans now compete harder for sales talent than the pay itself.

Courts reject retroactive commission cuts and the attrition they trigger.

Transparent, real-time commission tracking stops top performers from quietly leaving.

Unpredictable paychecks drive sales reps out faster than culture problems ever could.

Tracking dispute patterns monthly by rep reveals resignation risk before exit interviews confirm it.

Most sales reps earn less than advertised OTE because they miss quota, yet pay offers keep rising.