What Is The Difference Between Cumulative And Non-Cumulative Tiers?

This article is only applicable if your commission plan has multiple attainment tiers, each with a different payout. If your plan does NOT have tiers (ex: you pay commissions per-transaction with no required minimum), skip ahead.

Consider a sample incentive plan based on revenue, quotas, and 3 attainment tiers:

• Tier A 
  
  • Under 100% of quota = 6% of revenue
• Tier B
  
  • 100% - 150% of quota = 8% of revenue
• Tier C
  
  • Above 150% of quota = 10% of revenue

Non-Cumulative Tiers
If you have non-cumulative tiers, only the highest attained tier determines each rep's entire payout. For example, if a rep attains 110% of quota, only tier B will be taken into account to determine the payout. Tier A will be ignored.

Cumulative Tiers
If you have cumulative tiers, each attained tier delivers a portion of each rep's payout. For example, if a rep attains 110% of quota, this rep will receive a portion of his/her commission from tier A, and some from tier B.

Calculating Payouts

In most cases, non-cumulative tiers pay commissions over all credited transactions, while cumulative tiers only pay commissions for sales within their own "band". However, infinite variations exist. For example, you could decide to use non-cumulative tiers, but only pay commissions for revenue above 100% of quota. Sales Cookie is designed to handle all these combinations.

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