Half of ANZ companies pay commission from dollar one and your comp structure probably sucks because of it
No threshold means no teeth, and if you're wondering why your commission check feels like charity, this is why.
Nearly half of Australian companies pay sales commission from the first dollar. No threshold. No minimum performance bar. Just show up, close something, get paid.
Sounds great, right? It's not.
Here's what actually happens when there's no performance threshold: your commission rate gets compressed to compensate for the risk. The company knows weak performers will earn something, so they build that into the structure by lowering everyone's percentage or capping accelerators earlier.
You, the person actually hitting quota, subsidise the team members who close two deals a quarter and call it a win.
The data shows 46.7% of Australian companies have no threshold. That means if you're at one of those companies, you're probably looking at a 8-12% commission rate instead of 15-20%. Your OTE looks competitive on paper, but the math only works if you're at 120% of quota. At 100%? You're earning 15% less than the AE down the street whose company actually has standards.
This is why US sales comp often looks richer. It's not just bigger markets or higher ARR. It's structural. American sales orgs are more likely to set a threshold (usually 70-80% of quota) before commission kicks in. Sounds harsh, but it creates room for aggressive accelerators and uncapped upside because the company isn't paying out on mediocre performance.
The threshold isn't cruel. It's clarity. It says: "Here's the minimum bar. Hit it and we'll pay you well. Miss it and we need to have a different conversation."
ANZ's "everyone gets commission from dollar one" approach isn't generous. It's risk-averse management disguised as fairness. And it's costing top performers real money.
If your comp plan has no threshold, ask yourself: what's my effective commission rate at 100% quota versus 120%? Then ask why the company is protecting underperformance instead of rewarding excellence.
Your OTE might be $180k. But if half the team is at 60% and still earning commission, you're the one funding it.