The Three Models (And When to Use Each)
There are really only three comp structures in the high-ticket space. Everything else is a variation. Here's the honest breakdown of each:
Model 1: Commission-Only
The rep earns a percentage of every deal they close. No base salary, no draw. They eat what they kill.
When it works:
- • Consistent lead flow (10+ qualified calls/week)
- • Proven offer with 20%+ close rate
- • High ticket ($5K+) so each close is meaningful
- • You want to attract experienced closers
When it fails:
- • Inconsistent or low lead volume
- • New offer with unproven conversion
- • Long sales cycles (30+ days to close)
- • You want to attract junior talent to train
Typical range: 10–20% of cash collected for closers. 5–10% for setters (of deals they set that close).
Model 2: Base + Commission
A small guaranteed base (usually $2K–$4K/month) plus a lower commission percentage. Reduces risk for the rep.
When it works:
- • You're building a team (not just one closer)
- • Longer ramp-up period expected
- • You want loyalty and exclusivity
- • You can afford the fixed cost
When it fails:
- • Cash-tight businesses that can't absorb fixed costs
- • When the base becomes a "floor" and kills motivation
- • When you set the base too high relative to commission
Typical range: $2K–$4K base + 7–12% commission. Total OTE (on-target earnings) should be $8K–$15K/month for a closer.
Model 3: Draw Against Commission
You advance the rep a guaranteed amount each pay period, which they "pay back" from their commissions. If they earn more than the draw, they keep the excess. If they earn less, they owe the difference (recoverable) or you eat it (non-recoverable).
When it works:
- • First 30–60 days of a new hire (ramp period)
- • You believe in the rep but need time to prove lead flow
- • Transitional structure before going full commission
When it fails:
- • Indefinite draws with no end date = guaranteed salary
- • Recoverable draws that create debt = resentment
- • When the rep never exceeds the draw (wrong hire)
Recommendation: Use a non-recoverable draw for the first 30 days only. After that, transition to pure commission or base + commission. Don't let draws run indefinitely.
The Clawback Question
Clawbacks are the single most contentious topic in high-ticket comp plans. Here's the deal:
A clawback means if a client refunds or cancels within a certain window, the rep's commission on that deal is taken back. The logic is sound — you shouldn't pay commission on revenue you didn't keep.
But here's where it goes wrong:
90-day clawbacks are too long. If a client refunds 87 days in, that's a fulfillment problem — not a sales problem. The closer did their job. 30 days is the industry standard and the maximum that's fair.
Clawbacks on payment plans are tricky. If you pay commission on the full deal value upfront but the client stops paying at month 3 of 6 — who eats that? Define this in writing BEFORE it happens.
Best practice: Pay commission on cash collected (not deal value). 30-day clawback window. If the refund rate exceeds 15%, that's a fulfillment problem to fix — not a reason to punish the sales team.
What Top Performers Actually Earn
Based on my data from 300+ companies and 1,100+ placements, here's what the market actually pays:
| Role | Bottom 25% | Median | Top 25% |
|---|---|---|---|
| Setter | $3K–$5K/mo | $5K–$8K/mo | $8K–$12K/mo |
| Closer | $5K–$8K/mo | $8K–$15K/mo | $15K–$30K+/mo |
| Sales Manager | $8K–$12K/mo | $12K–$18K/mo | $18K–$25K+/mo |
Note: These are total earnings (base + commission). The median closer in the high-ticket space earns $8K–$15K/month. If your comp plan can't realistically get a good closer to $10K/month, you'll struggle to attract talent.
The Comp Plan Checklist
Before you publish your comp plan, make sure it passes these tests:
- Can you explain it in 2 sentences? If not, simplify it. Complexity breeds distrust.
- Can the rep calculate their own earnings? They should be able to look at their pipeline and know exactly what they'll make.
- Is the OTE realistic given your lead flow? Don't promise $15K/month if you only have 8 calls/week at a 20% close rate on a $5K offer. That's $8K max.
- Is it in writing? Not a Slack message. A document. Signed by both parties.
- Are clawback terms defined? Window length, what triggers them, how they're calculated.
- Is there a path to earn more? Tiers, bonuses, or accelerators for top performance.
- When does it get paid? Weekly? Bi-weekly? On cash collected or on close? Define it.
Common Mistakes
Changing the comp plan without notice. Nothing destroys trust faster. If you need to change it, give 30 days notice and grandfather existing deals.
Paying on "cash collected" but not defining what that means. Does it include payment plan installments? Upsells? Renewals? Define every term.
Setting commission too low to attract talent. If your offer is $3K and you're offering 5% commission ($150/deal), no experienced closer will take that role. They need to see a path to $10K+/month.
Making it too complex. Tiered structures with 5 levels, different rates for different products, bonuses that require a spreadsheet to calculate — all of this creates confusion and distrust.