Sales Commission Tracking: A Guide for B2B Sales Teams
Apr 28, 2025
Apr 28, 2025
Alex Zlotko
CEO at Forecastio
Last updated
Apr 28, 2025
Reading time
7 min
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Table of Contents
Quick Take
Quick Take
Proper commission tracking reduces disputes and increases rep motivation.
Ditch spreadsheets once you have 5+ reps –– they're error-prone and time-consuming.
Instead, use commission software that connects to your CRM to automatically calculate payments.
Define clear rules about when commissions are paid and how clawbacks work for canceled deals.
For most B2B teams, a base-plus-commission structure works best (e.g., $60,000 base + 10% commission).
Consider tiered plans to drive overperformance –– like 5% on sales up to $300K, 7% from $300K-$600K, and 10% above $600K.
Hold quarterly audits to catch errors and maintain trust.
Proper commission tracking reduces disputes and increases rep motivation.
Ditch spreadsheets once you have 5+ reps –– they're error-prone and time-consuming.
Instead, use commission software that connects to your CRM to automatically calculate payments.
Define clear rules about when commissions are paid and how clawbacks work for canceled deals.
For most B2B teams, a base-plus-commission structure works best (e.g., $60,000 base + 10% commission).
Consider tiered plans to drive overperformance –– like 5% on sales up to $300K, 7% from $300K-$600K, and 10% above $600K.
Hold quarterly audits to catch errors and maintain trust.
Sales commissions are one of the most powerful motivators for sales teams. But tracking them accurately can quickly become a headache if the right processes and tools aren’t in place. In this guide, we’ll walk through everything you need to know about sales commission tracking for B2B organizations — from basics to best practices and tools that can help.
What is a Sales Commission?
A sales commission is a financial reward paid to a salesperson based on the revenue, profit, or number of deals they generate for a company. It’s a core part of most sales compensation plans and is typically calculated as a percentage of the sales a rep closes. Some companies, however, offer flat-rate commission payouts for specific products, services, or performance milestones.
By linking a portion of future earnings directly to individual results, sales commissions drive motivation, accountability, and performance across the sales team. Effective commission structures encourage sales reps to focus on high-impact sales activities that support broader business objectives like revenue growth and stronger customer relationships.
Well-designed commission plans not only reward top performers but also help businesses track sales, reduce errors in commission calculations, and align the efforts of their sales professionals with company sales goals.
The Difference Between Sales Commission and Sales Compensation
Although often used interchangeably, sales commission and sales compensation are not the same thing and understanding the difference is critical for effective sales compensation management.
A sales commission refers specifically to the variable portion of a salesperson’s earnings, directly tied to their individual sales activities and performance. It’s the amount a sales rep earns based on the commission rates outlined in the company’s commission plan, usually calculated as a percentage of deals closed or revenue generated.
In contrast, sales compensation encompasses the total earnings a sales professional receives. A typical sales compensation plan includes a base salary, commission payments, performance-based bonuses, and sometimes additional incentives like stock options, trips, or awards that recognize outstanding contributions to business growth.
To put it simply:
👉 Sales commission = Variable pay based on closing deals (calculated commission based on performance).
👉 Sales compensation = Complete pay package (base salary + commission payouts + other rewards).
Clear differentiation between sales commissions and sales compensation is essential for building transparent, motivating comp plans that align sales team efforts with overall business goals and drive sustainable revenue growth.
What is Sales Commission Tracking?
Sales commission tracking is the process of monitoring, calculating sales commissions, and managing commission payments owed to sales reps based on their closed deals. It is a critical part of sales compensation management, ensuring that commission payouts are handled with accuracy, transparency, and timelines.
Effective commission tracking helps businesses:
Accurately calculate commissions based on closed revenue, deal size, or other performance criteria.
Ensure salespeople are paid correctly and according to the payment schedule defined in the commission plan.
Forecast compensation expenses to better align with revenue goals and financial planning.
Minimize disputes over commission statements and build trust with the sales team.
Drive performance by keeping sales professionals motivated with clear visibility into their potential earnings and total earnings.
On the other hand, poor commission tracking can lead to major problems — such as overpayments, underpayments, delayed commission payouts, frustrated sales reps, damaged customer relationships, and even increased turnover within the sales team. Manual errors, outdated commission processes, and inconsistent commission calculations can all contribute to these risks, affecting business growth and employee satisfaction.
Implementing efficient systems to track commissions, automate commission calculations, and maintain audit trails is essential for reducing manual effort, maintaining financial compliance, and supporting your business objectives.
How to Track Sales Commissions
There are several ways to track sales commissions, depending on the size of your sales team, the complexity of your commission structures, and your budget. Choosing the right method can significantly impact how accurately and efficiently you calculate commissions and manage commission payouts.
Manual Tracking
Some very small teams still use manual methods to track commissions, relying on notes, calculators, or basic math after reviewing closed deals.
✅ Works for very small teams with simple commission plans and minimal deal volume.
❌ Carries a high risk of manual errors, is extremely time-consuming, and becomes impossible to scale as the sales team grows.
Manual commission tracking also lacks audit trails, making it harder for finance teams to ensure financial compliance and reconcile commission statements.
Spreadsheet Tracking
Many growing B2B companies initially move to spreadsheet-based commission tracking, using tools like Excel or Google Sheets.
✅ Offers more structure, customizable templates, and better visibility into commission data.
❌ Still prone to human error, challenging to ensure accuracy, difficult to audit, and becomes impractical when managing dozens of sales reps or multiple commission tiers.
Spreadsheets require significant manual effort, which consumes valuable time and leaves room for miscalculations — especially as commission rates and comp plans vary depending on roles, products, or regions.
Specialized Software
The most effective way to track commissions is by using dedicated sales commission tracking software, which automates commission calculations and ensures real-time visibility into earnings.
✅ Automatically calculate commissions based on real-time CRM data, such as from HubSpot CRM or other CRM systems.
✅ Handle complex commission structures, including tiered commissions, bonuses, split deals, and future earnings projections.
✅ Reduce commission disputes, enhance transparency, and foster trust among sales professionals.
✅ Save valuable time for sales managers, finance teams, and revenue operations leaders by streamlining approvals and payouts.
For B2B teams with 5 or more sales reps, investing in commission tracking software typically pays off quickly by increasing accuracy, saving time, and reducing errors. It also helps businesses better align commission payouts with broader business goals, contributing to smoother operations and faster revenue growth.
Types of Sales Compensation Plans (With Examples)
Choosing the right sales compensation plan is crucial for motivating your sales team, aligning incentives with business goals, and ensuring efficient commission tracking. The structure you choose will directly impact how you calculate commissions, manage commission payouts, and drive overall revenue growth.
Here are three of the most common types of comp plans used in B2B sales:
1. Base Salary + Commission Plan
Structure: A stable base salary combined with a commission percentage based on sales performance.
Example:
Base salary: $60,000/year
Commission: 10% of closed deals
If a sales rep closes $500,000 in revenue → Earn $50,000 in commission payments
This is the most popular model for B2B sales teams because it balances income stability with performance incentives. Salespeople have a reliable paycheck while still being motivated to track quota attainment and close more deals to boost their total earnings.
When using this plan, businesses must track sales carefully, calculate commission accurately, and maintain clear commission statements to avoid disputes.
Sales Compensation Calculator by Forecastio
2. Tiered Commission Plan
Structure: Higher commission rates are awarded as sales reps exceed predefined sales thresholds.
Example:
5% commission for sales up to $300,000
7% commission for sales between $300,001 and $600,000
10% commission for sales over $600,000
Tiered commission structures are highly effective at motivating sales professionals to exceed quotas and maximize their potential earnings. They reward sustained high performance and can help companies accelerate revenue goals when reps push beyond standard targets.
Proper commission tracking and automated commission calculations are critical here to manage varying commission rates accurately and ensure sales reps are paid according to the right tier.
Tiered Commission Calculator by Forecastio
3. Bonus Plan
Structure: Fixed bonuses paid for achieving specific strategic goals, in addition to the base salary.
Example:
$5,000 bonus for exceeding quarterly targets by 10%
Additional $10,000 bonus for securing a major strategic account
Bonus-based sales compensation plans encourage behaviors and outcomes beyond just closing deals — such as winning strategic clients, improving customer relationships, or supporting new product launches. Bonus payouts are typically tied to clear, measurable objectives that align with larger business objectives.
Tracking bonuses accurately and aligning them with the overall commission process is essential for maintaining financial compliance, keeping sales activities goal-focused, and enhancing transparency within your sales team.
Download our free Sales Compensation Calculator to simplify commission calculations, save valuable time, and streamline your commission tracking process.
How to Streamline the Commission Tracking Process
A smooth and efficient commission tracking process is essential for ensuring accurate payouts, minimizing manual errors, and keeping your sales team motivated. Here are practical ways to streamline your commission tracking process and better manage sales commissions:
1. Automate Whenever Possible
Use sales commission tracking software that integrates with your CRM systems (like HubSpot CRM) and accounting platforms. Automation allows you to automatically calculate commissions based on closed deals, track sales in real time, and generate accurate commission statements with minimal manual effort.
Automated commission calculations help reduce human error, save valuable time, and offer real-time visibility into commission data for both sales reps and finance teams.
2. Define Clear Rules
Create well-documented rules around your commission structures including eligibility, timing of commission payouts, clawback policies for canceled deals, and how exceptions are handled.
Clear rules ensure financial compliance, prevent misunderstandings, and make it easier to calculate commissions consistently across your sales compensation plans.
3. Communicate Transparently
Keep your sales professionals informed by providing real-time visibility into their potential earnings, quota attainment, and upcoming commission payments. When salespeople can see their progress toward targets and understand how commission calculations work, it fosters transparency, builds trust, and ultimately drives performance.
4. Schedule Regular Audits
Conduct quarterly audits of your commission data to identify discrepancies, catch manual errors, and verify that commission payouts match closed deals and the correct commission rates. Regular audits provide an extra layer of accuracy and help maintain audit trails critical for financial compliance and business objectives.
5. Centralize Your Data
Store all commission process data including sales activities, closed deals, and commission plans in one centralized system. Reducing the number of manual entries, disconnected spreadsheets, and other tools not only saves time but also enhances transparency and increases accuracy across the entire commission tracking workflow.
Top Sales Commission Tracking Software
If you're ready to move beyond manual tracking and spreadsheets, investing in specialized sales commission tracking software can transform how you manage commissions and track sales commissions.
Here are some of the most popular options available today:
CaptivateIQ
A flexible sales commission tracking platform designed for fast-growing B2B companies. CaptivateIQ supports highly customizable commission plans, commission tiers, and advanced features that make it easy to calculate commissions even for complex sales models.
QuotaPath
QuotaPath emphasizes transparency, providing sales reps and sales managers with real-time visibility into potential earnings, quota progress, and commission payouts. It's ideal for companies that want to foster transparency and boost motivation within the sales team.
Spiff
Known for its strong CRM system integrations, including Salesforce and HubSpot CRM, Spiff automates commission calculations based on live pipeline data. It helps companies automatically calculate payouts, reduce errors, and drive business growth with better alignment between sales activities and incentives.
Performio
Performio specializes in handling complex commission structures often seen in larger enterprises. It offers robust reporting, configurable workflows, and the ability to track commissions across multiple teams, territories, and product lines — all critical for organizations with intricate compensation plans.
Everstage
Everstage stands out for its user-friendly interface (UI) and focus on ease of use. It allows salespeople and leadership to view commission statements, track quota attainment, and manage commission data with minimal manual effort, helping businesses ensure accurate payouts and maintain strong customer relationships.
Choosing the right commission tracking tool depends on your:
Team size
Deal complexity
Number of commission rates, commission tiers, and bonus structures
Integration needs (especially with your CRM systems or payroll systems)
The right platform should not only help you streamline your commission process, but also support future earnings forecasting, reduce manual errors, and align with your broader revenue goals.
Additionally, accurate sales forecasting plays a critical role in sales commission tracking. By forecasting expected deal closures and revenue generation, businesses can estimate potential earnings for sales reps and predict the total amount of commission payouts required.
This helps finance teams plan compensation budgets more precisely, improves financial compliance, and ensures your business objectives are fully aligned with your sales compensation strategy.
Summary
Sales commission tracking may not be the most glamorous part of running a B2B sales organization, but it’s one of the most critical foundations for long-term business growth and revenue success.
When done right, it keeps your sales team motivated, reduces disputes over commission payouts, improves sales forecasting, and builds lasting trust between leadership and sales professionals.
To recap the key points:
Understand the difference between sales commissions (variable pay) and total sales compensation (base salary + incentives).
Choose a sales compensation plan and commission structures that align with your business goals and sales model.
Move beyond manual tracking and spreadsheet tracking as soon as possible to reduce manual errors and save valuable time.
Invest in sales commission tracking software that can scale with your business needs, integrate with CRM systems, and support automated commission calculations.
Remember: commission plans drive behavior.
Tracking them accurately, enhancing transparency, and ensuring accurate payouts ensure that both your company and your salespeople win together — accelerating revenue growth, improving customer relationships, and supporting your broader business objectives.
Sales commissions are one of the most powerful motivators for sales teams. But tracking them accurately can quickly become a headache if the right processes and tools aren’t in place. In this guide, we’ll walk through everything you need to know about sales commission tracking for B2B organizations — from basics to best practices and tools that can help.
What is a Sales Commission?
A sales commission is a financial reward paid to a salesperson based on the revenue, profit, or number of deals they generate for a company. It’s a core part of most sales compensation plans and is typically calculated as a percentage of the sales a rep closes. Some companies, however, offer flat-rate commission payouts for specific products, services, or performance milestones.
By linking a portion of future earnings directly to individual results, sales commissions drive motivation, accountability, and performance across the sales team. Effective commission structures encourage sales reps to focus on high-impact sales activities that support broader business objectives like revenue growth and stronger customer relationships.
Well-designed commission plans not only reward top performers but also help businesses track sales, reduce errors in commission calculations, and align the efforts of their sales professionals with company sales goals.
The Difference Between Sales Commission and Sales Compensation
Although often used interchangeably, sales commission and sales compensation are not the same thing and understanding the difference is critical for effective sales compensation management.
A sales commission refers specifically to the variable portion of a salesperson’s earnings, directly tied to their individual sales activities and performance. It’s the amount a sales rep earns based on the commission rates outlined in the company’s commission plan, usually calculated as a percentage of deals closed or revenue generated.
In contrast, sales compensation encompasses the total earnings a sales professional receives. A typical sales compensation plan includes a base salary, commission payments, performance-based bonuses, and sometimes additional incentives like stock options, trips, or awards that recognize outstanding contributions to business growth.
To put it simply:
👉 Sales commission = Variable pay based on closing deals (calculated commission based on performance).
👉 Sales compensation = Complete pay package (base salary + commission payouts + other rewards).
Clear differentiation between sales commissions and sales compensation is essential for building transparent, motivating comp plans that align sales team efforts with overall business goals and drive sustainable revenue growth.
What is Sales Commission Tracking?
Sales commission tracking is the process of monitoring, calculating sales commissions, and managing commission payments owed to sales reps based on their closed deals. It is a critical part of sales compensation management, ensuring that commission payouts are handled with accuracy, transparency, and timelines.
Effective commission tracking helps businesses:
Accurately calculate commissions based on closed revenue, deal size, or other performance criteria.
Ensure salespeople are paid correctly and according to the payment schedule defined in the commission plan.
Forecast compensation expenses to better align with revenue goals and financial planning.
Minimize disputes over commission statements and build trust with the sales team.
Drive performance by keeping sales professionals motivated with clear visibility into their potential earnings and total earnings.
On the other hand, poor commission tracking can lead to major problems — such as overpayments, underpayments, delayed commission payouts, frustrated sales reps, damaged customer relationships, and even increased turnover within the sales team. Manual errors, outdated commission processes, and inconsistent commission calculations can all contribute to these risks, affecting business growth and employee satisfaction.
Implementing efficient systems to track commissions, automate commission calculations, and maintain audit trails is essential for reducing manual effort, maintaining financial compliance, and supporting your business objectives.
How to Track Sales Commissions
There are several ways to track sales commissions, depending on the size of your sales team, the complexity of your commission structures, and your budget. Choosing the right method can significantly impact how accurately and efficiently you calculate commissions and manage commission payouts.
Manual Tracking
Some very small teams still use manual methods to track commissions, relying on notes, calculators, or basic math after reviewing closed deals.
✅ Works for very small teams with simple commission plans and minimal deal volume.
❌ Carries a high risk of manual errors, is extremely time-consuming, and becomes impossible to scale as the sales team grows.
Manual commission tracking also lacks audit trails, making it harder for finance teams to ensure financial compliance and reconcile commission statements.
Spreadsheet Tracking
Many growing B2B companies initially move to spreadsheet-based commission tracking, using tools like Excel or Google Sheets.
✅ Offers more structure, customizable templates, and better visibility into commission data.
❌ Still prone to human error, challenging to ensure accuracy, difficult to audit, and becomes impractical when managing dozens of sales reps or multiple commission tiers.
Spreadsheets require significant manual effort, which consumes valuable time and leaves room for miscalculations — especially as commission rates and comp plans vary depending on roles, products, or regions.
Specialized Software
The most effective way to track commissions is by using dedicated sales commission tracking software, which automates commission calculations and ensures real-time visibility into earnings.
✅ Automatically calculate commissions based on real-time CRM data, such as from HubSpot CRM or other CRM systems.
✅ Handle complex commission structures, including tiered commissions, bonuses, split deals, and future earnings projections.
✅ Reduce commission disputes, enhance transparency, and foster trust among sales professionals.
✅ Save valuable time for sales managers, finance teams, and revenue operations leaders by streamlining approvals and payouts.
For B2B teams with 5 or more sales reps, investing in commission tracking software typically pays off quickly by increasing accuracy, saving time, and reducing errors. It also helps businesses better align commission payouts with broader business goals, contributing to smoother operations and faster revenue growth.
Types of Sales Compensation Plans (With Examples)
Choosing the right sales compensation plan is crucial for motivating your sales team, aligning incentives with business goals, and ensuring efficient commission tracking. The structure you choose will directly impact how you calculate commissions, manage commission payouts, and drive overall revenue growth.
Here are three of the most common types of comp plans used in B2B sales:
1. Base Salary + Commission Plan
Structure: A stable base salary combined with a commission percentage based on sales performance.
Example:
Base salary: $60,000/year
Commission: 10% of closed deals
If a sales rep closes $500,000 in revenue → Earn $50,000 in commission payments
This is the most popular model for B2B sales teams because it balances income stability with performance incentives. Salespeople have a reliable paycheck while still being motivated to track quota attainment and close more deals to boost their total earnings.
When using this plan, businesses must track sales carefully, calculate commission accurately, and maintain clear commission statements to avoid disputes.
Sales Compensation Calculator by Forecastio
2. Tiered Commission Plan
Structure: Higher commission rates are awarded as sales reps exceed predefined sales thresholds.
Example:
5% commission for sales up to $300,000
7% commission for sales between $300,001 and $600,000
10% commission for sales over $600,000
Tiered commission structures are highly effective at motivating sales professionals to exceed quotas and maximize their potential earnings. They reward sustained high performance and can help companies accelerate revenue goals when reps push beyond standard targets.
Proper commission tracking and automated commission calculations are critical here to manage varying commission rates accurately and ensure sales reps are paid according to the right tier.
Tiered Commission Calculator by Forecastio
3. Bonus Plan
Structure: Fixed bonuses paid for achieving specific strategic goals, in addition to the base salary.
Example:
$5,000 bonus for exceeding quarterly targets by 10%
Additional $10,000 bonus for securing a major strategic account
Bonus-based sales compensation plans encourage behaviors and outcomes beyond just closing deals — such as winning strategic clients, improving customer relationships, or supporting new product launches. Bonus payouts are typically tied to clear, measurable objectives that align with larger business objectives.
Tracking bonuses accurately and aligning them with the overall commission process is essential for maintaining financial compliance, keeping sales activities goal-focused, and enhancing transparency within your sales team.
Download our free Sales Compensation Calculator to simplify commission calculations, save valuable time, and streamline your commission tracking process.
How to Streamline the Commission Tracking Process
A smooth and efficient commission tracking process is essential for ensuring accurate payouts, minimizing manual errors, and keeping your sales team motivated. Here are practical ways to streamline your commission tracking process and better manage sales commissions:
1. Automate Whenever Possible
Use sales commission tracking software that integrates with your CRM systems (like HubSpot CRM) and accounting platforms. Automation allows you to automatically calculate commissions based on closed deals, track sales in real time, and generate accurate commission statements with minimal manual effort.
Automated commission calculations help reduce human error, save valuable time, and offer real-time visibility into commission data for both sales reps and finance teams.
2. Define Clear Rules
Create well-documented rules around your commission structures including eligibility, timing of commission payouts, clawback policies for canceled deals, and how exceptions are handled.
Clear rules ensure financial compliance, prevent misunderstandings, and make it easier to calculate commissions consistently across your sales compensation plans.
3. Communicate Transparently
Keep your sales professionals informed by providing real-time visibility into their potential earnings, quota attainment, and upcoming commission payments. When salespeople can see their progress toward targets and understand how commission calculations work, it fosters transparency, builds trust, and ultimately drives performance.
4. Schedule Regular Audits
Conduct quarterly audits of your commission data to identify discrepancies, catch manual errors, and verify that commission payouts match closed deals and the correct commission rates. Regular audits provide an extra layer of accuracy and help maintain audit trails critical for financial compliance and business objectives.
5. Centralize Your Data
Store all commission process data including sales activities, closed deals, and commission plans in one centralized system. Reducing the number of manual entries, disconnected spreadsheets, and other tools not only saves time but also enhances transparency and increases accuracy across the entire commission tracking workflow.
Top Sales Commission Tracking Software
If you're ready to move beyond manual tracking and spreadsheets, investing in specialized sales commission tracking software can transform how you manage commissions and track sales commissions.
Here are some of the most popular options available today:
CaptivateIQ
A flexible sales commission tracking platform designed for fast-growing B2B companies. CaptivateIQ supports highly customizable commission plans, commission tiers, and advanced features that make it easy to calculate commissions even for complex sales models.
QuotaPath
QuotaPath emphasizes transparency, providing sales reps and sales managers with real-time visibility into potential earnings, quota progress, and commission payouts. It's ideal for companies that want to foster transparency and boost motivation within the sales team.
Spiff
Known for its strong CRM system integrations, including Salesforce and HubSpot CRM, Spiff automates commission calculations based on live pipeline data. It helps companies automatically calculate payouts, reduce errors, and drive business growth with better alignment between sales activities and incentives.
Performio
Performio specializes in handling complex commission structures often seen in larger enterprises. It offers robust reporting, configurable workflows, and the ability to track commissions across multiple teams, territories, and product lines — all critical for organizations with intricate compensation plans.
Everstage
Everstage stands out for its user-friendly interface (UI) and focus on ease of use. It allows salespeople and leadership to view commission statements, track quota attainment, and manage commission data with minimal manual effort, helping businesses ensure accurate payouts and maintain strong customer relationships.
Choosing the right commission tracking tool depends on your:
Team size
Deal complexity
Number of commission rates, commission tiers, and bonus structures
Integration needs (especially with your CRM systems or payroll systems)
The right platform should not only help you streamline your commission process, but also support future earnings forecasting, reduce manual errors, and align with your broader revenue goals.
Additionally, accurate sales forecasting plays a critical role in sales commission tracking. By forecasting expected deal closures and revenue generation, businesses can estimate potential earnings for sales reps and predict the total amount of commission payouts required.
This helps finance teams plan compensation budgets more precisely, improves financial compliance, and ensures your business objectives are fully aligned with your sales compensation strategy.
Summary
Sales commission tracking may not be the most glamorous part of running a B2B sales organization, but it’s one of the most critical foundations for long-term business growth and revenue success.
When done right, it keeps your sales team motivated, reduces disputes over commission payouts, improves sales forecasting, and builds lasting trust between leadership and sales professionals.
To recap the key points:
Understand the difference between sales commissions (variable pay) and total sales compensation (base salary + incentives).
Choose a sales compensation plan and commission structures that align with your business goals and sales model.
Move beyond manual tracking and spreadsheet tracking as soon as possible to reduce manual errors and save valuable time.
Invest in sales commission tracking software that can scale with your business needs, integrate with CRM systems, and support automated commission calculations.
Remember: commission plans drive behavior.
Tracking them accurately, enhancing transparency, and ensuring accurate payouts ensure that both your company and your salespeople win together — accelerating revenue growth, improving customer relationships, and supporting your broader business objectives.
Sales commissions are one of the most powerful motivators for sales teams. But tracking them accurately can quickly become a headache if the right processes and tools aren’t in place. In this guide, we’ll walk through everything you need to know about sales commission tracking for B2B organizations — from basics to best practices and tools that can help.
What is a Sales Commission?
A sales commission is a financial reward paid to a salesperson based on the revenue, profit, or number of deals they generate for a company. It’s a core part of most sales compensation plans and is typically calculated as a percentage of the sales a rep closes. Some companies, however, offer flat-rate commission payouts for specific products, services, or performance milestones.
By linking a portion of future earnings directly to individual results, sales commissions drive motivation, accountability, and performance across the sales team. Effective commission structures encourage sales reps to focus on high-impact sales activities that support broader business objectives like revenue growth and stronger customer relationships.
Well-designed commission plans not only reward top performers but also help businesses track sales, reduce errors in commission calculations, and align the efforts of their sales professionals with company sales goals.
The Difference Between Sales Commission and Sales Compensation
Although often used interchangeably, sales commission and sales compensation are not the same thing and understanding the difference is critical for effective sales compensation management.
A sales commission refers specifically to the variable portion of a salesperson’s earnings, directly tied to their individual sales activities and performance. It’s the amount a sales rep earns based on the commission rates outlined in the company’s commission plan, usually calculated as a percentage of deals closed or revenue generated.
In contrast, sales compensation encompasses the total earnings a sales professional receives. A typical sales compensation plan includes a base salary, commission payments, performance-based bonuses, and sometimes additional incentives like stock options, trips, or awards that recognize outstanding contributions to business growth.
To put it simply:
👉 Sales commission = Variable pay based on closing deals (calculated commission based on performance).
👉 Sales compensation = Complete pay package (base salary + commission payouts + other rewards).
Clear differentiation between sales commissions and sales compensation is essential for building transparent, motivating comp plans that align sales team efforts with overall business goals and drive sustainable revenue growth.
What is Sales Commission Tracking?
Sales commission tracking is the process of monitoring, calculating sales commissions, and managing commission payments owed to sales reps based on their closed deals. It is a critical part of sales compensation management, ensuring that commission payouts are handled with accuracy, transparency, and timelines.
Effective commission tracking helps businesses:
Accurately calculate commissions based on closed revenue, deal size, or other performance criteria.
Ensure salespeople are paid correctly and according to the payment schedule defined in the commission plan.
Forecast compensation expenses to better align with revenue goals and financial planning.
Minimize disputes over commission statements and build trust with the sales team.
Drive performance by keeping sales professionals motivated with clear visibility into their potential earnings and total earnings.
On the other hand, poor commission tracking can lead to major problems — such as overpayments, underpayments, delayed commission payouts, frustrated sales reps, damaged customer relationships, and even increased turnover within the sales team. Manual errors, outdated commission processes, and inconsistent commission calculations can all contribute to these risks, affecting business growth and employee satisfaction.
Implementing efficient systems to track commissions, automate commission calculations, and maintain audit trails is essential for reducing manual effort, maintaining financial compliance, and supporting your business objectives.
How to Track Sales Commissions
There are several ways to track sales commissions, depending on the size of your sales team, the complexity of your commission structures, and your budget. Choosing the right method can significantly impact how accurately and efficiently you calculate commissions and manage commission payouts.
Manual Tracking
Some very small teams still use manual methods to track commissions, relying on notes, calculators, or basic math after reviewing closed deals.
✅ Works for very small teams with simple commission plans and minimal deal volume.
❌ Carries a high risk of manual errors, is extremely time-consuming, and becomes impossible to scale as the sales team grows.
Manual commission tracking also lacks audit trails, making it harder for finance teams to ensure financial compliance and reconcile commission statements.
Spreadsheet Tracking
Many growing B2B companies initially move to spreadsheet-based commission tracking, using tools like Excel or Google Sheets.
✅ Offers more structure, customizable templates, and better visibility into commission data.
❌ Still prone to human error, challenging to ensure accuracy, difficult to audit, and becomes impractical when managing dozens of sales reps or multiple commission tiers.
Spreadsheets require significant manual effort, which consumes valuable time and leaves room for miscalculations — especially as commission rates and comp plans vary depending on roles, products, or regions.
Specialized Software
The most effective way to track commissions is by using dedicated sales commission tracking software, which automates commission calculations and ensures real-time visibility into earnings.
✅ Automatically calculate commissions based on real-time CRM data, such as from HubSpot CRM or other CRM systems.
✅ Handle complex commission structures, including tiered commissions, bonuses, split deals, and future earnings projections.
✅ Reduce commission disputes, enhance transparency, and foster trust among sales professionals.
✅ Save valuable time for sales managers, finance teams, and revenue operations leaders by streamlining approvals and payouts.
For B2B teams with 5 or more sales reps, investing in commission tracking software typically pays off quickly by increasing accuracy, saving time, and reducing errors. It also helps businesses better align commission payouts with broader business goals, contributing to smoother operations and faster revenue growth.
Types of Sales Compensation Plans (With Examples)
Choosing the right sales compensation plan is crucial for motivating your sales team, aligning incentives with business goals, and ensuring efficient commission tracking. The structure you choose will directly impact how you calculate commissions, manage commission payouts, and drive overall revenue growth.
Here are three of the most common types of comp plans used in B2B sales:
1. Base Salary + Commission Plan
Structure: A stable base salary combined with a commission percentage based on sales performance.
Example:
Base salary: $60,000/year
Commission: 10% of closed deals
If a sales rep closes $500,000 in revenue → Earn $50,000 in commission payments
This is the most popular model for B2B sales teams because it balances income stability with performance incentives. Salespeople have a reliable paycheck while still being motivated to track quota attainment and close more deals to boost their total earnings.
When using this plan, businesses must track sales carefully, calculate commission accurately, and maintain clear commission statements to avoid disputes.
Sales Compensation Calculator by Forecastio
2. Tiered Commission Plan
Structure: Higher commission rates are awarded as sales reps exceed predefined sales thresholds.
Example:
5% commission for sales up to $300,000
7% commission for sales between $300,001 and $600,000
10% commission for sales over $600,000
Tiered commission structures are highly effective at motivating sales professionals to exceed quotas and maximize their potential earnings. They reward sustained high performance and can help companies accelerate revenue goals when reps push beyond standard targets.
Proper commission tracking and automated commission calculations are critical here to manage varying commission rates accurately and ensure sales reps are paid according to the right tier.
Tiered Commission Calculator by Forecastio
3. Bonus Plan
Structure: Fixed bonuses paid for achieving specific strategic goals, in addition to the base salary.
Example:
$5,000 bonus for exceeding quarterly targets by 10%
Additional $10,000 bonus for securing a major strategic account
Bonus-based sales compensation plans encourage behaviors and outcomes beyond just closing deals — such as winning strategic clients, improving customer relationships, or supporting new product launches. Bonus payouts are typically tied to clear, measurable objectives that align with larger business objectives.
Tracking bonuses accurately and aligning them with the overall commission process is essential for maintaining financial compliance, keeping sales activities goal-focused, and enhancing transparency within your sales team.
Download our free Sales Compensation Calculator to simplify commission calculations, save valuable time, and streamline your commission tracking process.
How to Streamline the Commission Tracking Process
A smooth and efficient commission tracking process is essential for ensuring accurate payouts, minimizing manual errors, and keeping your sales team motivated. Here are practical ways to streamline your commission tracking process and better manage sales commissions:
1. Automate Whenever Possible
Use sales commission tracking software that integrates with your CRM systems (like HubSpot CRM) and accounting platforms. Automation allows you to automatically calculate commissions based on closed deals, track sales in real time, and generate accurate commission statements with minimal manual effort.
Automated commission calculations help reduce human error, save valuable time, and offer real-time visibility into commission data for both sales reps and finance teams.
2. Define Clear Rules
Create well-documented rules around your commission structures including eligibility, timing of commission payouts, clawback policies for canceled deals, and how exceptions are handled.
Clear rules ensure financial compliance, prevent misunderstandings, and make it easier to calculate commissions consistently across your sales compensation plans.
3. Communicate Transparently
Keep your sales professionals informed by providing real-time visibility into their potential earnings, quota attainment, and upcoming commission payments. When salespeople can see their progress toward targets and understand how commission calculations work, it fosters transparency, builds trust, and ultimately drives performance.
4. Schedule Regular Audits
Conduct quarterly audits of your commission data to identify discrepancies, catch manual errors, and verify that commission payouts match closed deals and the correct commission rates. Regular audits provide an extra layer of accuracy and help maintain audit trails critical for financial compliance and business objectives.
5. Centralize Your Data
Store all commission process data including sales activities, closed deals, and commission plans in one centralized system. Reducing the number of manual entries, disconnected spreadsheets, and other tools not only saves time but also enhances transparency and increases accuracy across the entire commission tracking workflow.
Top Sales Commission Tracking Software
If you're ready to move beyond manual tracking and spreadsheets, investing in specialized sales commission tracking software can transform how you manage commissions and track sales commissions.
Here are some of the most popular options available today:
CaptivateIQ
A flexible sales commission tracking platform designed for fast-growing B2B companies. CaptivateIQ supports highly customizable commission plans, commission tiers, and advanced features that make it easy to calculate commissions even for complex sales models.
QuotaPath
QuotaPath emphasizes transparency, providing sales reps and sales managers with real-time visibility into potential earnings, quota progress, and commission payouts. It's ideal for companies that want to foster transparency and boost motivation within the sales team.
Spiff
Known for its strong CRM system integrations, including Salesforce and HubSpot CRM, Spiff automates commission calculations based on live pipeline data. It helps companies automatically calculate payouts, reduce errors, and drive business growth with better alignment between sales activities and incentives.
Performio
Performio specializes in handling complex commission structures often seen in larger enterprises. It offers robust reporting, configurable workflows, and the ability to track commissions across multiple teams, territories, and product lines — all critical for organizations with intricate compensation plans.
Everstage
Everstage stands out for its user-friendly interface (UI) and focus on ease of use. It allows salespeople and leadership to view commission statements, track quota attainment, and manage commission data with minimal manual effort, helping businesses ensure accurate payouts and maintain strong customer relationships.
Choosing the right commission tracking tool depends on your:
Team size
Deal complexity
Number of commission rates, commission tiers, and bonus structures
Integration needs (especially with your CRM systems or payroll systems)
The right platform should not only help you streamline your commission process, but also support future earnings forecasting, reduce manual errors, and align with your broader revenue goals.
Additionally, accurate sales forecasting plays a critical role in sales commission tracking. By forecasting expected deal closures and revenue generation, businesses can estimate potential earnings for sales reps and predict the total amount of commission payouts required.
This helps finance teams plan compensation budgets more precisely, improves financial compliance, and ensures your business objectives are fully aligned with your sales compensation strategy.
Summary
Sales commission tracking may not be the most glamorous part of running a B2B sales organization, but it’s one of the most critical foundations for long-term business growth and revenue success.
When done right, it keeps your sales team motivated, reduces disputes over commission payouts, improves sales forecasting, and builds lasting trust between leadership and sales professionals.
To recap the key points:
Understand the difference between sales commissions (variable pay) and total sales compensation (base salary + incentives).
Choose a sales compensation plan and commission structures that align with your business goals and sales model.
Move beyond manual tracking and spreadsheet tracking as soon as possible to reduce manual errors and save valuable time.
Invest in sales commission tracking software that can scale with your business needs, integrate with CRM systems, and support automated commission calculations.
Remember: commission plans drive behavior.
Tracking them accurately, enhancing transparency, and ensuring accurate payouts ensure that both your company and your salespeople win together — accelerating revenue growth, improving customer relationships, and supporting your broader business objectives.
Sales commissions are one of the most powerful motivators for sales teams. But tracking them accurately can quickly become a headache if the right processes and tools aren’t in place. In this guide, we’ll walk through everything you need to know about sales commission tracking for B2B organizations — from basics to best practices and tools that can help.
What is a Sales Commission?
A sales commission is a financial reward paid to a salesperson based on the revenue, profit, or number of deals they generate for a company. It’s a core part of most sales compensation plans and is typically calculated as a percentage of the sales a rep closes. Some companies, however, offer flat-rate commission payouts for specific products, services, or performance milestones.
By linking a portion of future earnings directly to individual results, sales commissions drive motivation, accountability, and performance across the sales team. Effective commission structures encourage sales reps to focus on high-impact sales activities that support broader business objectives like revenue growth and stronger customer relationships.
Well-designed commission plans not only reward top performers but also help businesses track sales, reduce errors in commission calculations, and align the efforts of their sales professionals with company sales goals.
The Difference Between Sales Commission and Sales Compensation
Although often used interchangeably, sales commission and sales compensation are not the same thing and understanding the difference is critical for effective sales compensation management.
A sales commission refers specifically to the variable portion of a salesperson’s earnings, directly tied to their individual sales activities and performance. It’s the amount a sales rep earns based on the commission rates outlined in the company’s commission plan, usually calculated as a percentage of deals closed or revenue generated.
In contrast, sales compensation encompasses the total earnings a sales professional receives. A typical sales compensation plan includes a base salary, commission payments, performance-based bonuses, and sometimes additional incentives like stock options, trips, or awards that recognize outstanding contributions to business growth.
To put it simply:
👉 Sales commission = Variable pay based on closing deals (calculated commission based on performance).
👉 Sales compensation = Complete pay package (base salary + commission payouts + other rewards).
Clear differentiation between sales commissions and sales compensation is essential for building transparent, motivating comp plans that align sales team efforts with overall business goals and drive sustainable revenue growth.
What is Sales Commission Tracking?
Sales commission tracking is the process of monitoring, calculating sales commissions, and managing commission payments owed to sales reps based on their closed deals. It is a critical part of sales compensation management, ensuring that commission payouts are handled with accuracy, transparency, and timelines.
Effective commission tracking helps businesses:
Accurately calculate commissions based on closed revenue, deal size, or other performance criteria.
Ensure salespeople are paid correctly and according to the payment schedule defined in the commission plan.
Forecast compensation expenses to better align with revenue goals and financial planning.
Minimize disputes over commission statements and build trust with the sales team.
Drive performance by keeping sales professionals motivated with clear visibility into their potential earnings and total earnings.
On the other hand, poor commission tracking can lead to major problems — such as overpayments, underpayments, delayed commission payouts, frustrated sales reps, damaged customer relationships, and even increased turnover within the sales team. Manual errors, outdated commission processes, and inconsistent commission calculations can all contribute to these risks, affecting business growth and employee satisfaction.
Implementing efficient systems to track commissions, automate commission calculations, and maintain audit trails is essential for reducing manual effort, maintaining financial compliance, and supporting your business objectives.
How to Track Sales Commissions
There are several ways to track sales commissions, depending on the size of your sales team, the complexity of your commission structures, and your budget. Choosing the right method can significantly impact how accurately and efficiently you calculate commissions and manage commission payouts.
Manual Tracking
Some very small teams still use manual methods to track commissions, relying on notes, calculators, or basic math after reviewing closed deals.
✅ Works for very small teams with simple commission plans and minimal deal volume.
❌ Carries a high risk of manual errors, is extremely time-consuming, and becomes impossible to scale as the sales team grows.
Manual commission tracking also lacks audit trails, making it harder for finance teams to ensure financial compliance and reconcile commission statements.
Spreadsheet Tracking
Many growing B2B companies initially move to spreadsheet-based commission tracking, using tools like Excel or Google Sheets.
✅ Offers more structure, customizable templates, and better visibility into commission data.
❌ Still prone to human error, challenging to ensure accuracy, difficult to audit, and becomes impractical when managing dozens of sales reps or multiple commission tiers.
Spreadsheets require significant manual effort, which consumes valuable time and leaves room for miscalculations — especially as commission rates and comp plans vary depending on roles, products, or regions.
Specialized Software
The most effective way to track commissions is by using dedicated sales commission tracking software, which automates commission calculations and ensures real-time visibility into earnings.
✅ Automatically calculate commissions based on real-time CRM data, such as from HubSpot CRM or other CRM systems.
✅ Handle complex commission structures, including tiered commissions, bonuses, split deals, and future earnings projections.
✅ Reduce commission disputes, enhance transparency, and foster trust among sales professionals.
✅ Save valuable time for sales managers, finance teams, and revenue operations leaders by streamlining approvals and payouts.
For B2B teams with 5 or more sales reps, investing in commission tracking software typically pays off quickly by increasing accuracy, saving time, and reducing errors. It also helps businesses better align commission payouts with broader business goals, contributing to smoother operations and faster revenue growth.
Types of Sales Compensation Plans (With Examples)
Choosing the right sales compensation plan is crucial for motivating your sales team, aligning incentives with business goals, and ensuring efficient commission tracking. The structure you choose will directly impact how you calculate commissions, manage commission payouts, and drive overall revenue growth.
Here are three of the most common types of comp plans used in B2B sales:
1. Base Salary + Commission Plan
Structure: A stable base salary combined with a commission percentage based on sales performance.
Example:
Base salary: $60,000/year
Commission: 10% of closed deals
If a sales rep closes $500,000 in revenue → Earn $50,000 in commission payments
This is the most popular model for B2B sales teams because it balances income stability with performance incentives. Salespeople have a reliable paycheck while still being motivated to track quota attainment and close more deals to boost their total earnings.
When using this plan, businesses must track sales carefully, calculate commission accurately, and maintain clear commission statements to avoid disputes.
Sales Compensation Calculator by Forecastio
2. Tiered Commission Plan
Structure: Higher commission rates are awarded as sales reps exceed predefined sales thresholds.
Example:
5% commission for sales up to $300,000
7% commission for sales between $300,001 and $600,000
10% commission for sales over $600,000
Tiered commission structures are highly effective at motivating sales professionals to exceed quotas and maximize their potential earnings. They reward sustained high performance and can help companies accelerate revenue goals when reps push beyond standard targets.
Proper commission tracking and automated commission calculations are critical here to manage varying commission rates accurately and ensure sales reps are paid according to the right tier.
Tiered Commission Calculator by Forecastio
3. Bonus Plan
Structure: Fixed bonuses paid for achieving specific strategic goals, in addition to the base salary.
Example:
$5,000 bonus for exceeding quarterly targets by 10%
Additional $10,000 bonus for securing a major strategic account
Bonus-based sales compensation plans encourage behaviors and outcomes beyond just closing deals — such as winning strategic clients, improving customer relationships, or supporting new product launches. Bonus payouts are typically tied to clear, measurable objectives that align with larger business objectives.
Tracking bonuses accurately and aligning them with the overall commission process is essential for maintaining financial compliance, keeping sales activities goal-focused, and enhancing transparency within your sales team.
Download our free Sales Compensation Calculator to simplify commission calculations, save valuable time, and streamline your commission tracking process.
How to Streamline the Commission Tracking Process
A smooth and efficient commission tracking process is essential for ensuring accurate payouts, minimizing manual errors, and keeping your sales team motivated. Here are practical ways to streamline your commission tracking process and better manage sales commissions:
1. Automate Whenever Possible
Use sales commission tracking software that integrates with your CRM systems (like HubSpot CRM) and accounting platforms. Automation allows you to automatically calculate commissions based on closed deals, track sales in real time, and generate accurate commission statements with minimal manual effort.
Automated commission calculations help reduce human error, save valuable time, and offer real-time visibility into commission data for both sales reps and finance teams.
2. Define Clear Rules
Create well-documented rules around your commission structures including eligibility, timing of commission payouts, clawback policies for canceled deals, and how exceptions are handled.
Clear rules ensure financial compliance, prevent misunderstandings, and make it easier to calculate commissions consistently across your sales compensation plans.
3. Communicate Transparently
Keep your sales professionals informed by providing real-time visibility into their potential earnings, quota attainment, and upcoming commission payments. When salespeople can see their progress toward targets and understand how commission calculations work, it fosters transparency, builds trust, and ultimately drives performance.
4. Schedule Regular Audits
Conduct quarterly audits of your commission data to identify discrepancies, catch manual errors, and verify that commission payouts match closed deals and the correct commission rates. Regular audits provide an extra layer of accuracy and help maintain audit trails critical for financial compliance and business objectives.
5. Centralize Your Data
Store all commission process data including sales activities, closed deals, and commission plans in one centralized system. Reducing the number of manual entries, disconnected spreadsheets, and other tools not only saves time but also enhances transparency and increases accuracy across the entire commission tracking workflow.
Top Sales Commission Tracking Software
If you're ready to move beyond manual tracking and spreadsheets, investing in specialized sales commission tracking software can transform how you manage commissions and track sales commissions.
Here are some of the most popular options available today:
CaptivateIQ
A flexible sales commission tracking platform designed for fast-growing B2B companies. CaptivateIQ supports highly customizable commission plans, commission tiers, and advanced features that make it easy to calculate commissions even for complex sales models.
QuotaPath
QuotaPath emphasizes transparency, providing sales reps and sales managers with real-time visibility into potential earnings, quota progress, and commission payouts. It's ideal for companies that want to foster transparency and boost motivation within the sales team.
Spiff
Known for its strong CRM system integrations, including Salesforce and HubSpot CRM, Spiff automates commission calculations based on live pipeline data. It helps companies automatically calculate payouts, reduce errors, and drive business growth with better alignment between sales activities and incentives.
Performio
Performio specializes in handling complex commission structures often seen in larger enterprises. It offers robust reporting, configurable workflows, and the ability to track commissions across multiple teams, territories, and product lines — all critical for organizations with intricate compensation plans.
Everstage
Everstage stands out for its user-friendly interface (UI) and focus on ease of use. It allows salespeople and leadership to view commission statements, track quota attainment, and manage commission data with minimal manual effort, helping businesses ensure accurate payouts and maintain strong customer relationships.
Choosing the right commission tracking tool depends on your:
Team size
Deal complexity
Number of commission rates, commission tiers, and bonus structures
Integration needs (especially with your CRM systems or payroll systems)
The right platform should not only help you streamline your commission process, but also support future earnings forecasting, reduce manual errors, and align with your broader revenue goals.
Additionally, accurate sales forecasting plays a critical role in sales commission tracking. By forecasting expected deal closures and revenue generation, businesses can estimate potential earnings for sales reps and predict the total amount of commission payouts required.
This helps finance teams plan compensation budgets more precisely, improves financial compliance, and ensures your business objectives are fully aligned with your sales compensation strategy.
Summary
Sales commission tracking may not be the most glamorous part of running a B2B sales organization, but it’s one of the most critical foundations for long-term business growth and revenue success.
When done right, it keeps your sales team motivated, reduces disputes over commission payouts, improves sales forecasting, and builds lasting trust between leadership and sales professionals.
To recap the key points:
Understand the difference between sales commissions (variable pay) and total sales compensation (base salary + incentives).
Choose a sales compensation plan and commission structures that align with your business goals and sales model.
Move beyond manual tracking and spreadsheet tracking as soon as possible to reduce manual errors and save valuable time.
Invest in sales commission tracking software that can scale with your business needs, integrate with CRM systems, and support automated commission calculations.
Remember: commission plans drive behavior.
Tracking them accurately, enhancing transparency, and ensuring accurate payouts ensure that both your company and your salespeople win together — accelerating revenue growth, improving customer relationships, and supporting your broader business objectives.
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Alex is the CEO at Forecastio, bringing over 15 years of experience as a seasoned B2B sales expert and leader in the tech industry. His expertise lies in streamlining sales operations, developing robust go-to-market strategies, enhancing sales planning and forecasting, and refining sales processes.
Alex is the CEO at Forecastio, bringing over 15 years of experience as a seasoned B2B sales expert and leader in the tech industry. His expertise lies in streamlining sales operations, developing robust go-to-market strategies, enhancing sales planning and forecasting, and refining sales processes.
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