What is an accelerator?
An accelerator is a higher commission rate paid on results above quota. A plan might pay 8% on bookings up to quota and 12% on everything beyond it. Accelerators reward overachievement and give top sellers a reason to keep selling after they hit their number. They are the opposite of a cap, which limits what a seller can earn.
Why it matters to a revenue leader
Without an accelerator, a seller who hits quota in the third quarter has little reason to close more this year and every reason to hold deals for next year. Research by Doug Chung, Thomas Steenburgh and K. Sudhir found that overachievement commissions help the best performers keep up their productivity after they reach quota. WorldatWork lists accelerators among the core levers of a pay-for-performance plan and describes a manufacturer that tied accelerator rates to profit goals. That last point matters in services: accelerating on bookings alone can reward low-margin work.
How to calculate it
Accelerated commission = results above quota × base commission rate × accelerator multiple.
Common mistake: setting the multiple without modeling what the plan costs if several sellers have a big year at once.
Example
Fictitious numbersA security integration seller has a $1 million quota, a 10% commission rate and a 1.5x accelerator above quota. The seller books $1.3 million. Commission is $100,000 on the first $1 million plus $300,000 × 15% = $45,000, for $145,000 in total.
"What happens to our comp cost if our top three sellers each finish at 150%?"