Commission Clawback: What It Is, How It Works and How to Apply It Fairly
A commission clawback is the reversal or recovery of a sales commission that has already been credited or paid, usually because the underlying transaction no longer meets the conditions of the compensation plan. Common triggers include customer cancellations, unpaid invoices, insurance policy lapses and transactions later found to be ineligible. Clawbacks help organisations connect incentive […]
SPIF in Sales: Meaning, Examples and When to Use One
A SPIF in sales is a short-term incentive offered to salespeople or channel partners for achieving a specific commercial objective. SPIFs are commonly used to encourage new product sales, improve product mix, activate partners or accelerate particular sales activities. Unlike regular commissions, SPIFs typically operate for a limited period and reward a clearly defined action […]
Sales Compensation Plan Template: What to Include (With Examples)
A sales compensation plan template is a structured document that defines how sales employees earn variable compensation, including commissions, bonuses and other performance-based incentives. An effective plan explains who is eligible, which results are rewarded, how payments are calculated and what happens when transactions change after a commission has been credited. For Sales Operations, Finance […]
Commission Accelerators and Decelerators: How They Work, With Examples
Commission accelerators increase a salesperson’s commission rate when performance exceeds a defined threshold, usually a sales quota. Decelerators reduce the applicable rate when performance falls below specified levels or enters a lower-paying tier. Both mechanisms help organisations manage the relationship between sales performance and incentive expenditure. However, poorly configured thresholds can produce unexpected payouts, create […]
