Paying SDRs on booked meetings
It rewards meetings that never happen or never qualify. Pay on qualified meetings held.
Free sales template
Sales commission plan template
A sales commission plan template sets out how a salesperson earns variable pay: what is measured, the target, the rate, what happens above and below target, and when it is paid. This one covers SDR and AE plans, with an attainment table you can fill in so every rep can work out their own pay before the quarter starts.
What it is and when to use it
A commission plan turns the sales plan into incentives. It should pay for the outcome the business needs from that role and nothing else. For an SDR, that is usually qualified meetings held, sometimes with a pipeline component. For an AE, it is usually closed revenue, sometimes with a margin or multi-year component.
The plan has a handful of moving parts. On-target earnings (OTE) is what a rep earns at 100% of target. Pay mix is the split between base salary and variable pay. The commission rate is variable pay at target divided by the target. Accelerators pay more above target; thresholds pay less, or nothing, below a minimum. Clawbacks recover commission if a deal is cancelled or a meeting is later found not to qualify. Caps limit the maximum, and most good plans avoid them.
In Australia, check two things with your accountant: commissions are generally ordinary time earnings, so super guarantee (12% from 1 July 2025) applies to them, and payroll tax may apply depending on your state and payroll size. Write the plan down and have each rep sign it before the period starts. This page is general information, not tax or legal advice.
Who uses it
Founders
Design the first SDR or AE commission plan so it pays for qualified pipeline, not activity.
Sales managers
Model payouts at different attainment levels and keep plans consistent across the team.
The commission plan template
Every section and column, with what to write in each. Use the fill-in version below to type straight into it and copy, print or download the result.
1. Plan basics
| Field | What to write |
|---|---|
| Role and plan period | For example: SDR, FY27, paid monthly. Or AE, Q1 to Q4 FY27, paid quarterly. |
| On-target earnings | Base salary plus variable pay at 100% of target, excluding super. |
| Pay mix | Base and variable split. SDR plans often carry less variable than AE plans. |
| What is measured | SDR: qualified meetings held, defined in writing. AE: closed won revenue, defined as first-year contract value or annual recurring revenue. |
| Target per period | From the quota setting template. |
2. Attainment bands and rates
Fill in the rate for each band and the payout at a sample attainment, so every rep can check their own number.
| Attainment band | Rate | Example attainment | Example payout |
|---|---|---|---|
| Below threshold | No commission, or a reduced rate | For example 40% | Dollar value |
| Threshold to 100% | Standard rate: variable at target / target | For example 80% | Dollar value |
| 100% to 150% | Accelerated rate, for example 1.5 times standard | For example 120% | Dollar value |
| Above 150% | Accelerated rate continues, or a higher one | For example 160% | Dollar value |
3. Rules
| Field | What to write |
|---|---|
| What counts | SDR: the qualified meeting definition and who confirms it. AE: signed contract, payment received or go-live. |
| When commission is paid | For example, the payroll after month end, once the meeting or deal is confirmed. |
| Clawbacks | When commission is recovered: a deal cancelled within a set period, or a meeting later found not to qualify. |
| Splits and ownership | How credit is shared when two people work a deal, and how disputes are settled. |
| SPIFs and extras | Short-term incentives, such as a bonus per meeting with a new target segment. Keep them rare. |
| Changes and leaving | How the plan can change mid-period, and what happens to unpaid commission if the rep leaves. |
Fill it in online
Type into the template, or load the worked example and edit it. Nothing you enter is stored or sent anywhere: it stays in this browser tab until you copy, download or print it.
Empty fields copy as {{placeholders}} so you can see what is left to fill in.
Formulas
The formulas behind the plan.
| Metric | Formula | Note |
|---|---|---|
| Variable pay at target | On-target earnings minus base salary | Excluding super. |
| Standard commission rate | Variable pay at target / target | Per meeting for SDRs, or a percentage of revenue for AEs. |
| Payout in the standard band | Attainment achieved x standard rate | Above the threshold only, if the plan uses one. |
| Payout above target | (Target x standard rate) + (amount above target x accelerated rate) | Accelerators reward over-performance without paying more for the first 100%. |
| Cost of sale | Total commission paid / revenue or meetings produced | Check the plan stays affordable at 150% attainment. |
Worked example
An Australian B2B company using outsourced SDRs. The company is described, not named, and the figures are illustrative.
Worked example: SDR and AE plans at a Melbourne logistics software company
A Melbourne freight software company has one in-house SDR working alongside an outsourced SDR team, and two AEs. The founder rewrote both commission plans for FY27 so the SDR is paid on qualified meetings held and the AE on new annual recurring revenue.
All salary and commission figures are illustrative examples, not benchmarks. They exclude super, which is paid on top.
1. Plan basics
- Role and plan period
- SDR, FY27, paid monthly. AE plan summarised in the notes.
- On-target earnings
- $90,000 on-target earnings
- Pay mix
- $72,000 base and $18,000 variable, an 80 to 20 split
- What is measured
- Qualified meetings held: a logistics or operations leader at a company in the ICP who attended the meeting and confirmed a freight visibility problem. The AE confirms within two business days.
- Target per period
- 8 qualified meetings held per month, 96 a year
2. Attainment bands and rates
| Attainment band | Rate | Example attainment | Example payout |
|---|---|---|---|
| Below 50% (under 4 meetings) | No commission | 3 meetings, 38% | $0 |
| 50% to 100% (4 to 8 meetings) | $187.50 per meeting ($1,500 / 8) | 6 meetings, 75% | $1,125 |
| Above 100% (9 to 12 meetings) | $281.25 per meeting, 1.5 times | 10 meetings, 125% | $1,500 + 2 x $281.25 = $2,062.50 |
| Above 150% (13+ meetings) | $281.25 per meeting continues | 13 meetings, 163% | $1,500 + 5 x $281.25 = $2,906.25 |
3. Rules
- What counts
- Meeting held and confirmed as qualified by the AE in the CRM. Disputes go to the head of sales within a week.
- When commission is paid
- The payroll after month end.
- Clawbacks
- None for meetings. If a meeting is later found to be outside the ICP, it is removed from the next month's count.
- Splits and ownership
- Meetings booked by the in-house SDR count to the in-house SDR only. Outsourced team meetings are not part of this plan.
- SPIFs and extras
- One per quarter at most, set by the head of sales.
- Changes and leaving
- Plan changes need 30 days' written notice. Earned commission is paid out if the SDR leaves.
What to notice
- Monthly variable at target is $18,000 / 12 = $1,500, so the standard rate is $1,500 / 8 = $187.50 per qualified meeting held.
- The AE plan uses the same structure on revenue: variable at target divided by the annual revenue target gives the standard rate, with 1.5 times above 100% and no cap.
- Paying on held, qualified meetings rather than booked ones stopped meetings being booked with people who were never going to buy.
How to use it, step by step
- Decide what the role must produce. Qualified meetings for an SDR, closed revenue for an AE. Pay for that outcome, not for activity.
- Set on-target earnings and pay mix. Use market data for the role and city, and decide how much is variable.
- Set the target. From the quota setting template, so the target is achievable for a fully ramped rep.
- Calculate the standard rate. Variable pay at target divided by target.
- Add threshold and accelerators. A threshold stops paying for very low performance; accelerators reward over-performance. Model payouts at 50%, 100% and 150%.
- Write the rules. What counts, when it is paid, clawbacks, splits, changes and leaving. Check super and payroll tax with your accountant. Deducting commission already paid from someone's wages is restricted under the Fair Work Act 2009, so get advice before you write a clawback that works that way; reducing future commission is the usual approach.
- Sign it before the period starts. Each rep signs the plan and gets a copy with worked examples.
Common mistakes
Plans too complex to calculate
If a rep cannot work out their own pay, the plan does not motivate. Keep it to one or two measures.
Caps on top performers
Capping commission tells your best people to stop selling once they hit it.
Changing the plan mid-period without notice
It destroys trust. Put the change rules in writing.
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Want the meetings, not just the template?
Nousu Collective runs phone-first outbound for B2B companies selling into Australia, New Zealand and Singapore, with Australian callers in-house in Sydney. Our outsourced SDR service builds the list, runs the calling, email and LinkedIn cadence and books qualified meetings into your calendar. If you only need calls made, see cold calling or appointment setting.
In our data from 218,000+ dials into Australian businesses, Australian callers booked 1.3 meetings per 100 dials, against 0.3 for offshore teams. Pricing is starting at $7,000 a month.
FAQ
Commission plan template questions
Straight answers from the team that runs outbound for Australian B2B companies.
Still have questions?
Book a 30-minute callRole and period, on-target earnings, pay mix, what is measured, the target, rates by attainment band, accelerators and thresholds, what counts and when, payment timing, clawbacks, splits, extras such as SPIFs, and the rules for changes and leaving.
Most commonly per qualified meeting held, against a monthly target, with an accelerated rate above target. Some plans add a component for pipeline created or opportunities accepted by the AE.
Divide variable pay at target by the target. If an SDR's variable pay is $1,500 per month and the target is 8 qualified meetings, the rate is $187.50 per meeting.
A higher rate paid on results above target, for example 1.5 times the standard rate on every meeting or dollar above 100%. It rewards over-performance.
Commissions are generally ordinary time earnings, so the super guarantee applies to them. The rate is 12% from 1 July 2025. Confirm your obligations with your accountant or the ATO; this is not tax advice.
Usually not. Caps discourage top performers. If you worry about windfalls, use clear rules on what counts and a review for unusually large single deals.
Need a team to run the plan?
Book a 30-minute call. We will map your market and buyers and show you what a phone-first campaign would book.
Starting at $7,000 a month. Exact fee quoted after a 30-minute call.