5 Commission Rules That Boost Sales & Protect Profits

30 Oct 2025 · 2 min

Watch on YouTube

2:24

A short YouTube presentation by Donna Genie (Donna Bordeaux) outlining five practical rules for designing commission plans that protect company profits while motivating sales staff. Key recommendations: pay commissions only after funds are collected, stress-test rates at 3–5× projected growth, build flexible baseline/supplemental rules, integrate refund policies with commission adjustments, and design residual/trailed commissions to reward ongoing customer value.

Questions this video answers

Only after the funds are fully collected and cleared.

Project revenues at three to five times current levels (3–5×).

Donna Bordeaux@calculatedmoves.com.

Chapters

Lets have some real talk about commission structures that protect your business and motivate your sales team. First, always collect money before paying any commissions. This sounds basic, but so many businesses get burned by paying out commissions on sales that never actually convert to revenue. Implement a strict policy where commissions are paid only after the funds are fully collected and cleared. Second, stress test your commission rates by projecting revenues at three to five times higher than the current levels. Ask yourself, if our sales grew dramatically, would this commission structure still make financial sense? If the answer is no, redesign your plan now before it becomes a massive liability. Third, build flexibility into your commission rules. Don't create rigid structures that you can't adjust. Start with baseline rates and create supplemental mechanisms for slower initial periods. This approach gives your team a Runway while protecting your long term margins. Fourth, develop a clear refund policy that integrates with your commission structure. You want to incentivize long term customer relationships, not just quickie sales. Consider how refunds impact commission payouts and build that into your initial framework. Fifth, think residuals. Design commission plans that reward ongoing customer relationships, not just initial transactions. This might mean tiered commissions or trailing percentages that continue as customers generate recurring revenue. The ultimate goal here is creating a commission structure that keeps your top talent motivated long term. Your plan should feel fair, transparent and aligned with both individual and company growth objectives. Remember, a great commission structure isn't just about numbers. It's about creating a sustainable ecosystem where your sales professionals feel valued and your business remains financially strong. If you'd like help designing your commission program, we're here to help you reach out and learn how we can help your business grow. I'm Donna Bordeaux@calculatedmoves.com.