Accelerator and decelerator modeler

Accelerators usually get set by picking a multiple that sounds motivating, then finance discovers the cost when three reps finish at 150%. The rate is not the decision; the payout curve is. This modeler prices two designs at five attainment levels, per rep and across a realistic team distribution, so you can see who a decelerator takes money from and who an accelerator gives it to.

By·LinkedIn·Editorial Lead·7 sections·CSV·Updated

Download it

Loading…

What you get

  • A plan inputs block that derives the base rate from target incentive and quota
  • Two tier designs side by side: linear with accelerators, and decelerator plus steeper accelerators
  • Payout at 50%, 80%, 100%, 120%, and 150% attainment with every formula written out
  • Cost as a percent of bookings for each scenario
  • A 10-rep team distribution that prices each design at the team level

Who it's for

  • Comp admins testing tier designs before plan rollout
  • Finance partners who need the cost of over-performance
  • VPs of Sales deciding how steep the payout curve should be

What's inside

7 sections, each listed with its own size. The first is previewed below; the remaining 6 come with the download, with blank rows ready to fill in.

SectionSizePreviewed
Plan inputs3 columns, 3 worked example rowsBelow
Tier designs5 columns, 6 worked example rowsIn the download
Payout by attainment scenario6 columns, 5 worked example rowsIn the download
Cost as a percent of bookings5 columns, 5 worked example rowsIn the download
Team distribution6 columns, 6 worked example rowsIn the download
What the model showsGuidance notesIn the download
Before finalizing the curve7-point checklistIn the download

Preview of section 1

Plan inputs

InputValueFormula
Annual target incentive$100,000From the plan
Annual quota$1,000,000From the quota letter

How to use it

1. Fix target incentive and quota first

Both designs must pay exactly target incentive at 100%. Enter target incentive and quota, derive the base rate, and check the 100% row before comparing anything else.

2. Use last year's attainment distribution

Replace the example team with your actual spread of rep attainment. A design that looks cheap with everyone at 100% can be expensive when your distribution has a long top tail.

3. Compare payout at 50% as carefully as at 150%

A decelerator cuts pay for struggling reps sharply. Decide deliberately whether that is the message you want, because it also shapes who leaves.

4. Price the worst good year

Ask finance to approve the cost if every rep finished one scenario higher than forecast. If that number is unacceptable, change the curve now, not in Q3.

Frequently asked questions

What is a commission accelerator?

A higher commission rate paid on bookings above a threshold, usually quota. For example, 10% up to quota and 15% above it. It rewards over-performance and discourages holding deals for the next period.

What is a commission decelerator?

A lower rate paid on bookings below a threshold, such as 50% of quota. To keep target pay at 100% whole, the rate between the threshold and quota must be higher than the base rate.

How much should a commission accelerator be?

Multiples of 1.5x to 2x the base rate above quota are common starting points. The right number is whatever your team distribution shows you can afford at one scenario above forecast. Model it rather than picking a multiple.