Build a Threshold, Target, and Accelerator Curve
Construct a simple payout curve with threshold, target rate, and accelerator while preserving marginal economics.
Create a payout curve for a $1M quota and $80K target incentive where the company wants payout discipline below threshold and stronger upside above quota. Threshold controls underperformance pay, target rate funds expected performance, and accelerator rewards profitable incremental value. The common trap is making the curve exciting before testing what each marginal rate pays for. Threshold No commission below 50% quota attainment, or below $500K bookings. This prevents meaningful payout before the role has produced a minimum level of value. Target rate $80K target incentive / $1M quota = 8% target rate. At quota, the rep earns the intended…
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