Tiered override plan

Tiered Override Plan

A Tiered Override Plan is a commission structure that rewards sales representatives for their increased sales performance by allowing them to earn higher commissions. As sales increase, the commission rate rises proportionately. This encourages sales representatives to achieve higher sales targets and provides them with a financial incentive to do so.

Under a Tiered Override Plan, the commission structure is divided into tiers based on sales volume. For instance, a sales representative may earn a 10% commission on sales up to $10,000, a 12% commission on sales between $10,001 and $20,000, and a 15% commission on sales above $20,000. This commission structure not only motivates sales reps to achieve their sales targets but also provides them with an opportunity to earn increased income.

Moreover, with a Tiered Override Plan, sales reps can also earn overrides from their downline sales representatives’ performance. This incentivizes sales reps to not only increase their personal sales performance but also to mentor and support their team to achieve higher sales targets.

In summary, a Tiered Override Plan is an effective commission structure that rewards high performers and motivates them to achieve higher sales targets. It also fosters teamwork and mentorship, promoting a collaborative working environment.