Accelerator Design

Accelerators increase the commission rate for revenue above quota. They exist to solve a specific financial problem: a rep at 100% has hit their target, and the marginal cost of the next dollar sold is your highest-leverage revenue. Accelerators ensure the rep stays motivated after hitting quota — because without them, the rational economic choice is to push deals into next quarter for a fresh quota. The accelerator rate and the threshold at which it activates are the two most financially consequential decisions in comp design.

1. Standard Accelerator: 1.5x-2x At 100% attainment, the commission rate increases by 50-100%. If the base rate is 10%, the accelerated rate is 15-20%. This makes over-attainment lucrative enough to prevent sandbagging. The company still benefits because the accelerated revenue has zero incremental acquisition cost — the rep is already on payroll and the pipeline was already built.
2. Tiered Accelerators Multiple acceleration tiers: 1.5x at 100-120%, 2x at 120-150%, 2.5x above 150%. Each tier provides additional motivation as attainment increases. The financial trade-off: higher tiers are more expensive per dollar but drive disproportionate total revenue. A rep at 160% costs more per deal but generates far more absolute profit than a rep at 100%.
3. The Cap Decision Should commissions be capped? Financially: caps limit comp expense but also limit revenue motivation. A rep who hits the cap in October stops selling in November. Strategically: uncapped plans attract top performers who seek unlimited upside. If your top 10% of reps generate 30%+ of total revenue, capping their comp caps your revenue. The math almost always favors uncapped plans.