The Tiered Commission Structure Every Business Owner Needs to Know

The Tiered Commission Structure Every Business Owner Needs to Know

Author: Aleasha Bahr May 7, 2026 Duration: 12:47
There’s a question I hear more than almost any other from business owners: “How should I compensate my salesperson?” It sounds simple. It isn’t. Get it wrong early and you create a situation that’s hard to fix. You either end up with a salesperson negotiating from a position you can’t push back on, or a top performer reconsidering their role after a change to commission. Both are expensive. Both are avoidable.   In this latest episode of Sales is NOT a Dirty Word, I break down how to build a compensation structure that works for you and your salesperson, without guesswork, frustration, or unintended leverage. Here’s what I cover: The Sales Diva Problem and how to avoid it The base + incentive structure that actually drives performance.  The three tiers every comp plan needs.  Why monthly and quarterly bonuses outperform annual ones.  The most expensive mistake in sales leadership   A strong compensation plan should be a win/win. If it doesn’t, it will show up in your results.   If you’re not sure how to structure compensation, start with your margins, identify what you need off your plate, and build from there. And if you want support doing exactly that, including building a repeatable and predictable sales process your salesperson can actually run, book a Sales Level Up Call with me: 👉 https://calendly.com/aleasha/salesteam-levelup [00:55] Real client story: Inheriting a salesperson with a comp plan that does not work[01:55] The Sales Diva phenomenon and why salespeople are very good at internal sales[02:45] What a win-win compensation plan actually looks like and why profit margins matter[03:35] Designing incentives around the behaviors you want: paid-in-full contracts, month-to-month tradeoffs[04:00] The base salary principle: cover cost of living, drive everything else with commission[04:45] Tiered commission structures and why unlocking levels beats a flat rate[05:30] The three goal tiers: minimum viable, excited, and "gobs of money"[06:00] Why you need to get comfortable with your salesperson being the highest paid person in the company[06:45] The CFO trap: why cutting a top performer's comp is a short-term gain with a long-term cost[08:00] Do not mess with a salesperson's money. Period.[08:45] How to use KPIs to make performance conversations objective, not subjective[09:15] Monthly vs. quarterly vs. annual bonuses and the 90-day brain science behind it[10:05] Annual team goals as a retention and culture-building tool[10:40] Why salespeople fail: no process, no training, no direction[11:15] Outbound vs. inbound roles and how that changes the base #SalesCompensation #SalesTeam #SalesLeadership #SalesIsNotADirtyWord #BlackSheepSales #HiringASalesperson #SalesStrategy #CommissionStructure #SmallBusinessSales #BusinessOwnerTips #SalesManagement #ScalingYourBusiness #RevenueGrowth #SalesProcess #EntrepreneurMindset #B2BSales #SalesCoach #WinWinSales #SalesPerformance #AleashaBahr 

Ever feel like the whole idea of "selling" makes your skin crawl? You're not alone, but what if everything you've been told about sales is wrong? Sales is NOT a Dirty Word is built on the idea that genuine connection, not manipulation, is the real engine of business growth. Host Aleasha Bahr, creator of the Matchmaker Sales method™, dismantles the high-pressure stereotypes one conversation at a time. Instead of scripts and tricks, she opens up her playbook, sharing insights and strategies typically reserved for her private coaching clients-where achieving an 80% conversion rate on sales calls isn't a fantasy, but a regular outcome. Each episode of this podcast features candid talks with experts who offer alternative, refreshingly human perspectives on the process. You'll hear real stories about building trust, understanding client needs deeply, and creating agreements that feel good for everyone involved. This isn't about learning to pretend; it's about discovering a framework where your authenticity becomes your greatest asset in closing deals. Tune in to transform your approach from something you dread into a natural, even enjoyable, part of your professional life.
Author: Language: English Episodes: 50

Sales is NOT a Dirty Word
Podcast Episodes
Define Your Anti-Audience and Increase Your Sales [not-audio_url] [/not-audio_url]

Duration: 12:19
Most people can describe their target audience. Very few can clearly articulate who they are not for. That blind spot is expensive. It shows up as nightmare clients who drain your energy and income more than adding to it…
Why Hiring a Sales Team Too Early Can Kill Your Profit [not-audio_url] [/not-audio_url]

Duration: 11:10
You are in a phase most people do not talk about honestly. Your offer works. People are buying. You are busy enough to feel stretched but not stable enough to feel safe. So the idea of hiring a salesperson or team of the…
The Smart Way to Increase Sales Without Trashing the Competition [not-audio_url] [/not-audio_url]

Duration: 8:09
One of the phrases that can put many on the defense is, “We’re also talking to a few others.” Sometimes it’s said plainly. Other times it’s softened into something like, “We’re still exploring our options.” Either way, i…
When Being “Nice” in Sales Turns Into Self-Sabotage [not-audio_url] [/not-audio_url]

Duration: 12:40
Repeat after me - some money is NOT better than no money. In this Sales is NOT a Dirty Word episode, I walk through a real client situation that exposes how easy it is to agree too quickly, stay vague to preserve harmony…
The Language Patterns That Undermine Trust in Sales [not-audio_url] [/not-audio_url]

Duration: 11:59
After reviewing hundreds of sales calls, there are phrases people use in sales conversations that quietly sabotage the sale. The intention is usually to be polite. However, on an unconscious level, they erode trust, clar…
Disrupting Delayed Decision Patterns in Sales Without Pressure [not-audio_url] [/not-audio_url]

Duration: 8:50
Most people are not bad decision makers. They are just repeating the same decision pattern (without realizing it) and wondering why nothing changes. In this new Sales is NOT a Dirty Word episode, I break down one of the…
Why Curiosity Is the Most Underrated Skill in Sales [not-audio_url] [/not-audio_url]

Duration: 8:58
Most salespeople spend their time perfecting their pitch, memorizing scripts, and thinking about how to close. But here’s the truth: what separates a top performer from someone average in sales is not what you say - it’s…
What Founders Get Wrong About Sales Compensation [not-audio_url] [/not-audio_url]

Duration: 9:31
One of the most expensive mistakes founders make happens the moment a salesperson starts performing. Revenue rises. Momentum builds. …and then the first large commission check appears. Instead of celebrating the growth,…
How To Stand Out When Everyone Is Using AI in Sales [not-audio_url] [/not-audio_url]

Duration: 10:01
Everyone is racing to automate sales. Buyers are racing to avoid anything that sounds automated. People are talking about AI in sales like it is the magic solution to every problem. But if you have actually used it, you…