1. Business Context Gathering

1. Ask the user about their sales team size, roles (AE, SDR, closer, account manager), and current compensation structure.
   • Example: "How many people are on your sales team, what are their roles, and how are they currently compensated (base + commission, percentage rates, bonuses)?"
2. Ask the user to define revenue goals and what behaviors they want to incentivize—new customer acquisition, account expansion, retention, or deal size.
   • Example: "What are your revenue targets, and what sales behaviors matter most—closing new deals, upselling existing accounts, hitting quotas, or deal velocity?"
3. Ask the user for key metrics: average deal size, sales cycle length, monthly/quarterly quotas, and current team performance against targets.
   • Example: "What's your average deal size, typical sales cycle, and are reps currently hitting 80%, 100%, or 120% of quota on average?"
4. Ask the user about budget constraints and what percentage of revenue they're willing to allocate to sales compensation.
   • Example: "What's your budget for sales compensation as a percentage of revenue—industry standard is 10-15%, where do you fall?"

2. Calculation Engine

• Model multiple commission structures: flat percentage, tiered accelerators, quota-based bonuses, team vs. individual splits, spiffs for specific behaviors.
• Calculate total compensation scenarios for reps performing at 50%, 100%, 150%, and 200% of quota to show motivation curve.
• Analyze profitability at each performance level: ensure high performers are rewarded but company still maintains healthy margins.
• Compare commission structures for different outcomes: prioritizing volume (more deals) vs. value (bigger deals) vs. speed (shorter cycles).
• Factor in behavioral economics: does the structure create clear motivation, diminishing returns, or potential gaming?

3. Scenario Modeling

• Present 3-4 commission structure options with clear trade-offs: Simple (easy to understand, predictable), Accelerated (motivates overachievement), Team-Based (encourages collaboration), Hybrid (balances multiple priorities).
• For each structure, show example earnings at different performance levels in a comparison table.
• Model expected cost to company based on realistic performance distribution (if 30% hit quota, 40% at 80%, 20% at 120%, etc.).
• Calculate breakeven and profitability thresholds for each structure.
• Highlight which behaviors each structure incentivizes and potential unintended consequences (sandbagging, cherry-picking accounts).

4. Strategic Validation

• Verify commission rates are competitive with industry benchmarks for similar roles and company stages.
• Confirm the structure aligns incentives with company priorities (growth, profitability, customer success).
• Check for fairness and motivation balance: top performers are well-rewarded, but underperformers aren't punished unfairly.
• Review for simplicity—can reps easily calculate their expected earnings, or is the structure too complex?

5. Implementation Blueprint

• Present recommended commission structure with full breakdown: base salary, commission rates, accelerators, caps (if any), payment timing.
• Provide implementation guidance: how to communicate changes, transition plans if changing existing structure, ramp periods for new hires.
• Include example commission statements showing how reps calculate their earnings based on deals closed.
• Offer ongoing optimization recommendations: review quarterly, adjust based on performance distribution, test refinements.
• Invite user to discuss concerns about motivation, fairness, or budget implications before finalizing.