Sales Commission Structures Explained: SDR, AE, and AM Plans in 2026
There are five common commission structures in tech sales and each one rewards different behavior. Here is how to read them in 2026.
Salary and Comp · 2026-06-20 · 8 min read
Sales commission plans look like math but they are actually behavior design documents. Show me the comp plan and I can predict how the rep will spend their day. Understanding the five common structures lets you reverse-engineer what the company actually wants you to do, and whether the seat will reward the kind of seller you are.
SDR: meetings-based with quality gate
Most SDR plans pay a flat dollar amount per qualified meeting that converts to opportunity (or shows up and is accepted by AE). Typical structure: $200 to $400 per meeting at SMB, $400 to $800 at mid-market, $800 to
500 at enterprise. Quota is meetings per month. Some plans pay a smaller amount per show-rate meeting plus a larger amount per converted opportunity. The behavior this drives: book real meetings, not fluff, because the AE gate will kick out the noise.
AE: percentage of ARR with accelerators
The standard new-logo AE plan pays 8 to 12 percent of ARR closed against an annual quota. At 100 percent attainment, an accelerator typically kicks in at 1.5x. Above 150 percent, often 2x or 3x. Some plans differentiate between new logo (higher rate) and expansion (lower rate). Some companies pay a flat percentage with no accelerator (rare and weaker for top reps). The behavior this drives: prioritize deal size over deal count, push hard for expansion within the existing patch.
AM and CSM: retention plus expansion
AM (Account Manager) plans typically combine a retention component (X percent for hitting gross retention of 95 percent or higher) and an expansion component (Y percent of net new ARR from existing accounts). Some plans gate expansion commission behind retention attainment. The behavior this drives: protect the base first, then expand. CSM plans vary widely from no variable at all to MBO-based variable up to 20 percent of base.
Hybrid: base + variable + MBO
Many enterprise plans include an MBO (Management By Objectives) layer paying 5 to 15 percent of variable based on qualitative goals (build a strategic account plan, run a customer event, complete certification). MBOs are easy money if you understand them upfront and brutal if they are vague. Always ask: how is the MBO scored, by whom, on what timeline? If the answer is mushy, treat the MBO portion as zero in your offer math.
Red flags in any plan
Quotas that change mid-year without notice. Patches that get re-carved if you over-perform. Caps on commission above 150 percent (limits your upside). Clawback periods longer than 12 months (commission can be reversed even after a great year). No documented escalation path for plan disputes. Any one of these is grounds to negotiate. Two or more is grounds to walk.
Comp plans are the most honest document a company will share with you. Read carefully, ask questions in writing, and treat the plan as a forecast of your actual day, not just your paycheck.