Best Practice Report

Crediting Rules To Consider When Designing Compensation Plans

September 6th, 2024
Seth Marrs, Principal Analyst
Seth Marrs Principal Analyst
With contributors:
Cristina De Martini , Tyler Orleans , Ellen Lind

Summary

Crediting rules outline the point(s) in the sales process at which to pay commission. These rules are important to ensure the compensation program is as motivating as possible. For sellers, crediting rules are further complicated by the type of revenue stream — pay upfront, subscription, or pay as you go. In this report, we explain how revenue operations teams use distinct inflection points and revenue streams to determine when and how to credit compensation.

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