How to use this checklist
Work through the 9 items across three categories — Structure Type, Calculation, and Career Impact. Be honest: "Can calculate earnings for typical and best months" only counts if you've actually modeled 50%, 75%, and 100% of quota. The Structure Type items (flat vs tiered vs base+commission, draw terms, when commissions are earned, caps) carry the most weight because they determine whether the plan can actually pay what it advertises.
What your result means
70% or higher means you understand the structure well enough to predict earnings across performance scenarios. 40-69% flags gaps — usually in the Calculation category (modeling earnings at different quota levels, accounting for chargebacks and caps). Below 40% means the Structure Type fundamentals aren't clear yet: you may not know whether commissions are paid at sale or at collection, whether the draw is recoverable, or how territory assignment affects your pipeline. Those unknowns directly determine whether the plan pays what was pitched.
When to trust it
This checklist evaluates how well you understand the plan, not whether the plan is fair or lucrative. A structure you fully understand can still be a bad deal — a commission cap, a recoverable draw, or a territory that under-supplies leads can quietly limit income. Before signing, ask a mentor or employment attorney in your industry to review the actual agreement, especially the non-compete and non-solicitation clauses that can restrict future moves.
Frequently Asked Questions
What should I look for in a commission offer?
Four things: the base-to-variable mix (can you cover rent on base alone?), quota realism (ask what percentage of current reps hit it — 60%+ attaining is healthy, 20% means the plan is fiction), the draw structure (recoverable draws are loans against future commissions), and ramp protection for your first months. A high commission rate with an unattainable quota is a pay cut with extra steps.
Is a higher commission rate always better?
No — compare total expected earnings, not the rate. 50% commission on a product that's hard to sell can pay less than 20% on one that flies off the shelf. Ask for the median (not top) rep's actual W-2 earnings in each of the last two years, and factor in base salary, benefits, and territory quality. The rate is marketing; the median earnings are reality.
What questions should I ask before accepting a commission-based job?
Start with: What percentage of reps hit quota? Is the draw recoverable, and over what period? When are commissions paid after the sale? What happens to booked deals if I leave? How often does the comp plan change? Honest employers answer these readily — evasion on any of them, especially comp-plan churn, tells you what your income volatility will look like.