How to Motivate Sales Teams with Transparent Commission Plans

Sales is a game of motivation. 

And yet, many companies undermine their top performers with commission caps, inflated quotas, or unclear compensation structures.

As Jamal Reimer, Founder of Enterprise Sellers, pointed out in a recent viral LinkedIn post, the mistreatment of high performers is only getting worse:

“In the wake of tremendous achievement in 2024, five top sellers in my community find themselves in 2025 capped in commission, targets more than doubled (far beyond any team members), or outright fired,” Jamal wrote in his post.

Reps should be celebrated.

Instead, they’re penalized—sometimes without warning. And when that happens, it doesn’t just affect those sellers—it sends a toxic message to the entire team:

“Why should I go above and beyond if I’ll just get penalized for it?”

Unfortunately, this problem is widespread:

• 80% of companies have paid reps incorrectly at some point​.
• 39% of revenue leaders say their compensation plans don’t align with business goals​.
• It takes reps 3-6 months to fully understand how they’re paid​.
  — From our Report: Solving the Biggest Sales Compensation Challenges

This lack of clarity and trust in commissions destroys motivation, leads to high turnover, and costs companies millions in lost productivity.

At QuotaPath, we believe that compensation is not just a cost of doing business—it’s a lever for growth. A transparent, strategic compensation plan should reward over-performance, drive revenue growth, align Finance and Sales, and build trust across the org.

In this blog, we’ll break down how you can transform your comp plan into a growth engine—one that rewards performance, encourages the right behaviors, and helps your business scale.

Compensation as a Performance Driver, Not Just a Reward

Why would a sales rep go the extra mile if they don’t trust their commission structure?

As we’ve seen, lack of transparency in comp plans leads to confusion, frustration, and disengagement. However, when compensation is clear and aligned with business goals, it becomes a powerful tool for motivation and performance.

The problem is that many companies view commissions as just another expense. 

The reality? Compensation is one of the strongest levers for driving revenue growth.

As our VP of RevOps, Sales, and Marketing Ryan Milligan said: “We fundamentally believe that a comp plan is a performance driver. It’s the best thing you have in your pocket to drive changes in human behavior.”

When reps have clear visibility into how their deals impact earnings, they don’t just chase quick wins—they optimize for high-value deals that drive long-term revenue. 

They proactively push for bigger contracts, multi-year agreements, and expansion opportunities because they see the direct financial impact of their decisions.

A well-structured comp plan is more than just a payout system—it’s a strategic tool to shape behavior and drive growth. And when reps can see, trust, and predict their earnings, they work smarter, close better deals, and contribute more to the company’s long-term success.

The following section will explore how visibility into commissions fuels motivation and drives the right sales behaviors.

How Visibility Fuels Motivation and Drives the Right Sales Behavior

Now we know that compensation isn’t just a cost—it’s a tool for driving behavior. 

But to effectively drive sales performance, reps need real-time visibility into how their deals impact their earnings.

This is where so many companies fall short. 

As mentioned, 39% of revenue leaders admit their compensation plans don’t align with business goals​. When this happens, sellers won’t optimize for the right deals—they’ll chase whatever gets them paid fastest.

If reps don’t clearly understand how they’re paid, what they could earn, and how different deals impact their commissions, it makes building trust, motivation, and long-term success that much harder.

The Shift from Quota-Chasing to Smart Selling

Historically, sales reps have focused on one thing: hitting quota. 

They track their progress, scramble at the month’s end, and sigh a sigh of relief when they cross the finish line.

But the real question isn’t “Did I hit my number?” it’s “Which deals should I prioritize to maximize my earnings and drive the most value for the business?”

When reps understand how different deal structures impact their commissions, they start to think more strategically:

• Should I push for a higher ACV to increase my payout?
• Will a multi-year contract earn me a better rate?
• Should I prioritize upsells because they pay out at a higher percentage?

And, when companies align compensation with the types of deals they want to encourage, the results speak for themselves.

The Power of Multi-Year Accelerators & Renewals

Let’s look at a real-world example: multi-year accelerators.

QuotaPath customers who implemented higher commission rates for longer-term contracts saw a measurable increase in multi-year deals. That’s because reps could see in real-time how much more they’d earn by selling a 3-year contract versus a 1-year contract.

“If you show a rep the commission rate they’ll earn on different types of deals, you can motivate them to close the right types of deals via the highest commission rate. It becomes a win-win,” said Ryan.

This is the power of visibility. 

When reps have clarity into their commissions, they sell smarter and don’t just sell more.

Visibility transforms sales compensation from a guessing game into a strategic growth engine. 

When reps know which deals drive the highest commissions, they naturally prioritize the right sales efforts—creating higher ACVs, longer contracts, and more revenue for the company.

Below, we’ll explore how this level of transparency doesn’t just benefit reps but also streamlines operations and drives efficiency for Finance and RevOps teams.

The Ops and Finance Perspective: More Than Just Time Savings

Above, we shared how real-time commission visibility helps reps prioritize the right deals.

But what about the teams responsible for tracking and paying those commissions?

 For Finance and RevOps, the stakes are just as high.

“These are the big things people come to us with: ‘My reps have no visibility. The process takes forever. We’ve made payment mistakes, hurting morale,” said Ryan.

Traditionally, Finance and Ops teams have seen commission tracking software as a way to reduce admin time and automate calculations and payments. And while that’s true, the real value goes far beyond time savings.

From Manual Work to Strategic Growth

Before using QuotaPath, most teams relied on spreadsheets and manual exports to track commissions. 

This meant:

• Hours spent reconciling data at the end of the month.
• Confusing commission disputes that slowed down payroll.
• Inability to roll out incentives quickly without reworking complex Excel formulas.

QuotaPath eliminates these pain points by automating the process and creating a direct link between comp plans and revenue strategy.

Key Benefits for Finance & RevOps Teams

• Reduced admin time – QuotaPath customers cut commission tracking time by up to 50%, allowing teams to focus on revenue strategy instead of manual calculations.
• No more payment disputes – Reps see how their commissions are calculated, eliminating confusion and ensuring Finance teams aren’t bombarded with “Why am I getting paid this?” emails.
• Quick SPIFs & incentives – Need to launch a new incentive for Q4 pipeline generation? QuotaPath lets teams implement new comp structures instantly—without having to rebuild models in spreadsheets.

At its core, QuotaPath doesn’t just automate commissions—it aligns incentives with business outcomes. Everyone benefits when Finance, RevOps, and Sales work from the same transparent, data-driven system.

The SPIF Report

Our latest report below dives into our data from $7.3M in sales incentives.

Read Report

Making Your Comp Plan a Revenue Growth Engine

Design your comp plan with revenue growth in mind to unlock the power of commissions.

The best compensation plans don’t just reward performance—they shape it. The structure of your plan should guide reps toward the deals that matter most to the business.

But here’s where many companies get it wrong: They create comp plans in isolation, without tying them directly to revenue goals.

Instead, ask yourself these three key questions:

• What kind of revenue growth matters most to your business?
  • Are you focused on new logo acquisition?
  • Do you want to increase expansion revenue through upsells and cross-sells?
  • Are you prioritizing multi-year contracts for long-term retention?
• Which deals should reps prioritize to maximize their commission earnings?
  • If longer-term contracts create more predictable revenue, reps should see a clear incentive to push for multi-year agreements.
  • If upsells contribute significantly to net retention, those deals should pay out at higher commission rates.
  • If your goal is higher ACV, your plan should reward deal size over volume.
• How does your commission plan make it crystal clear which deals are most valuable?
  • If reps don’t immediately understand how different deal structures impact their pay, they’ll default to selling whatever is easiest to close.
  • Your comp plan should clearly reward the deals that align with your company’s growth strategy.

Example: Incentivizing Expansion Revenue

Let’s say expansion revenue is a top priority for your business. 

Your reps are responsible for upsells and cross-sells, but they tend to focus more on new logo acquisition because it pays a higher commission.

To shift behavior, you increase commission rates on expansion deals. Instead of 5%, upsells now pay 8-10% commission. With clear visibility into these rates, reps:

• Actively seek expansion opportunities instead of just chasing new deals.
• Prioritize high-value customer accounts that are primed for growth.
• Drive a measurable increase in net retention and contract value.

This shift doesn’t require a sales training overhaul—it just requires a comp plan that clearly signals what success looks like.

By designing comp plans with strategic intent, you’re not just paying out commissions—you’re engineering growth.

Conclusion: Turn Your Comp Plan into a Growth Machine

A transparent, strategic compensation plan should keep reps happy and drive real revenue impact by aligning incentives across your organization.

As Ryan emphasized throughout this discussion, commissions are a team effort. 

Sales reps, leaders, finance teams, and RevOps all have different motivations, but a well-structured comp plan bridges the gap—ensuring everyone is working toward the same revenue goals.

Transform your comp plan into a proper revenue driver: schedule time with our team today.