This guide explains sales commission structures and how they influence sales behavior, motivation, and pay. Commission structures are a core part of variable compensation and determine how and when sales reps earn commissions based on performance. By clearly defining which actions and outcomes are rewarded, companies use variable pay to encourage behaviors that drive revenue and align with business goals. The guide reviews common types of commission structures, outlines best practices and benchmarks, and emphasizes the importance of selecting the right structure to motivate teams effectively, support growth, and match the needs of both sales reps and the organization.

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