Attainment-based compensation is calculated by dividing revenue by the assigned quota. In a typical business-to-business sales organization, plans are setup in such a way that 40% to 50% of the salesforce reaches the target and 50% to 60% exceed targets.

It is not uncommon to have upside set at three times the target incentive. A payout factor is calculated by using the revenue attainment and the factor is applied to the target incentive to calculate compensation payout. Any increase in revenue is going to increase the payout factor, thereby putting the salesperson into accelerators (usually beyond 100%) and thus increasing payout. The increase in payout factor will be achieved by a revenue multiplier, which as the name implies, is multiplying the revenue amount with pre-configured factors based on the role and by products or offers. READ MORE