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
Sales Onboarding System That Converts [not-audio_url] [/not-audio_url]

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Let’s be real. Sales onboarding standards are so low they’re non-existent. There are none. In too many companies, new reps are thrown into the deep end and told to “figure it out.” They’re expected to sell a product they…
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How to Hire Your First VA Without the Headache with Kris Ward [not-audio_url] [/not-audio_url]

Duration: 32:01
Hiring your first VA shouldn’t feel like trial by fire. Yet for most entrepreneurs, the process is stressful, disappointing, and downright painful. In this episode of Sales is Not a Dirty Word, I sit down with Kris Ward,…
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Duration: 8:28
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Inclusion, Identity, and Main Character Energy with Jackie Roby [not-audio_url] [/not-audio_url]

Duration: 34:25
How often do you feel like you’re living your life for everyone else? Always showing up. Always giving.Always putting your own needs last. It’s easy to slip into that role without even realizing it — until one day you wa…
Sales Leadership Tips: Balancing Top Performers and Team Success [not-audio_url] [/not-audio_url]

Duration: 10:10
At some point, every sales team has experienced a “sales diva” You know the type: the top-performing rep who plays by their own rules. They cherry-pick leads, dodge meetings, ignore the CRM, and expect special treatment…