How Flat Commission Rates Are Killing Your Sales Culture

One question I hear from quite a few customers, especially startups setting their first comp plans : Should we even bother setting quotas?

What if they’re too high? Too low? What if the sales team pushes back? Wouldn’t it be easier to just pay a flat 10% commission and call it a day?

Here’s what I tell them: Quotas work. They motivate Account Executives (AEs), create accountability, and build a culture where everyone knows exactly where they stand.

You don’t need fancy accelerators or complicated structures. A clear quota sets expectations, drives focus, and gives high performers a clear target to crush.

🤫 Quotas Are Already There (Whether You See Them or Not)

When you hire an AE, you usually tell them their on-target earnings (OTE). Say the OTE is $100K with a 10% commission — that means they need to sell $1M to hit their OTE.

That $1M? That’s a quota — whether you say the word or not.

Making it explicit just removes guesswork and gives your team something concrete to aim for.

⚖️ Same Quota for Everyone?

Early-stage companies often keep it simple: same quota for everyone. Easy to explain, feels fair, and supports a merit-based culture.

But as you grow, you’ll see not every territory is equal. Some reps inherit goldmines — others, not so much.

Many companies shift to individual quotas based on each AE’s territory potential:

✓Unique Quota ✓Personalized OTE ✓Custom Base Commission Rate (OTE ÷ Quota)

Sure, it’s more work to manage — but it pays off in fairness, performance, and cost efficiency as you scale.

✨ Bottom Line

You don’t need an overly fancy comp plan to keep your team motivated. You just need a clear quota. It sets the bar. It keeps everyone honest. It gives your top performers something to beat.

Got questions? Drop them in the comments — or DM me.

And if you’re curious about what your real comp plan should look like, we built you a little sandbox to play in: EasyComp Plan Recommendations

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