Last Updated: December 17, 2025
Effective From: February 1, 2024

At Bags, we believe in rewarding the hard work and success of our team. Our commission and bonus policy is designed to recognize and incentivize the contributions of our sales team, fostering a collaborative and motivated work environment.

Commission Structure

1. Sales Commission:

• Eligibility: All team members are eligible for sales commissions.
• Rate: New Sales commissions are set against targets of ARR
• Ad-hoc clean-up sales commissions are 2% of the sales value
• Subscription upsell commissions are calculated as a rate of 4% of annual upsell value for subscriptions
• Quarterly Payout: Commissions are paid out quarterly. This regular interval ensures that our team members receive timely rewards for their efforts.
• Net ARR is the calculation - this considers churn in how we think about it.
• Sales Commissions are calculated net of any discounts.

2. Ops + Product Commission:

• Team Incentive: In addition to individual commissions, 5% of actualized revenue goes into a team bonus pot. This pot is a testament to our collaborative spirit, where everyone’s success contributes to the collective reward.
• Quarterly Payout: The accumulated bonus pot is distributed quarterly among all team members. This payout is meant to celebrate the collective achievements of the past year and to start the new year on a positive and united front.
• Calculation: The distribution of the commission pot is based on each team member’s overall contribution to the team’s success, considering factors beyond just sales numbers, such as teamwork, customer feedback, and overall work ethic.

3. Team Bonus:

• Eligibility: All Bags team members are eligible for a bonus upon hitting our collective annual sales target, set by Bags leadership
• Rate: 10% of base salary per team member
• Payout: Annual bonus will be paid out by end of year

2. Accounting Commissions:

• Eligibility: All Bags accounting members (Leads and IC’s) are eligible for commission for on-time deliverables
• Rate:
  • 2% of subscription for maintenance
  • 2% of monthly clean-up price

Policy Guidelines

• Transparency: We maintain a transparent process in calculating commissions and bonuses. Sales team members will have access to sales data relevant to their commissions.
• Fairness and Equality: Our policy is designed to ensure fairness. Commissions and bonuses are awarded based on clear and measurable criteria.
• Adjustments: Bags reserves the right to modify the commission and bonus policy. Any changes will be communicated clearly and in advance to all team members.
• Caps: The commission policy is uncapped as of December 12, 2023 until any further updates.
• Active Employment: Only active employees will benefit from the commission structure at Bags. If you leave the company (you quit) you are foregoing your commission and bonus. If you are dismissed or made redundant, you will be compensated based on earnings up to the date of dismissal.

Our Commitment

At Bags, we are committed to fostering a work environment where dedication and success are recognized and rewarded. We understand that our growth and success as a company are directly tied to the hard work of our team. This commission and bonus policy is one of the many ways we express our appreciation and support for our team members.