commission-caps
Financial-services firms operate under real incentive constraints. That part is true. What is often untrue is the next leap: because the firm is regulated, it therefore needs a hard cap on what productive people can earn. That is a different claim, and it needs a different standard of proof. The
commission-caps
Insurance leaders need to separate two very different things that often get called “caps.” One is an external constraint: carrier schedules, product economics, or compliance boundaries that the agency does not control. The other is a firm-imposed ceiling on what a producer can earn. Those are not the same decision,
commission-caps
Hard commission caps are a poor fit for most SaaS teams. The reason is not that one benchmark says most companies avoid them. The reason is structural: SaaS depends on recurring revenue, expansion potential, and expensive seller ramp. A hard ceiling tells the rep to stop producing at the exact
comp-design
A commission cap is a policy that tells your best salespeople to stop selling. There is no other way to describe what it does. Once a rep hits the cap, every additional dollar of revenue they could generate earns them nothing. The rational response -- and the observed response, confirmed
research
If you're evaluating a commission cap, the useful question is not whether caps are common enough to be normal. It is what problem the cap is trying to solve, what behavior it creates once a rep gets near the ceiling, and whether the business is trading away incremental