Commission Matrix for Production Intelligence and MERIT 2.0

A structured compensation page designed to reward machine acquisition, subscription growth, platform expansion, services attachment, and long-term account development across PI and the MERIT 2.0 operating stack.

Primary focus ARR + adoption

Pilot motion Fast entry

Bundle motion PI → MERIT

Payout logic Tiered

1) Core commission matrix

Use this matrix to align compensation to the commercial value of each product motion.

Offer / Motion	Revenue Basis	Suggested Commission	Accelerator Trigger	Payout Timing	Notes
PI 30-Day Pilot Entry motion	One-time setup / activation fee	10%	+2% if pilot converts within 45 days	Upon customer payment	Designed to reward speed-to-close without over-indexing on low-ticket setup revenue.
Platform Deployment / Configuration Services	$1,000 per platform deployment	15%	None or tie to minimum gross margin	As cash is collected	Applies to each local platform deployment and initial configuration engagement.
Machine Deployment / Configuration Per asset	$500 per machine asset	15%	Higher effective payout on multi-machine deployments	As cash is collected	Applies in any environment for each machine added and configured.
PI Subscription Per machine / monthly	First-year annualized recurring revenue	12%	15% once rep exceeds quarterly ARR target	50% at go-live, 50% after first paid renewal month	Best for core machine monitoring deals and straightforward expansion on existing accounts.
Self-Hosted Platform Subscription Own VM only	$99/month platform subscription on customer-hosted VM	0%	None	Non-commissionable	Applied only when the customer elects to deploy into their own VM. Not charged on PI multitenant cloud.
TSRB Cloud Hosting Add-On Hosted surcharge	$10 per machine / month	0%	None	Non-commissionable	Offsets ingress, egress, and retention demands for deployments hosted by TSRB.
Cloud Overages Variable pass-through	Actual monthly overage beyond standard hosting add-on	0%	None	Non-commissionable	Because overages are cost recovery, they are billed to the customer but do not carry sales commission.
PI Multi-Machine Rollout Scale motion	First-year ARR	14%	16% for 25+ machines or plant-wide standardization	Milestone based by deployment phase	Higher rate recognizes larger sales cycle, organizational friction, and broader rollout risk.
MERIT 2.0 Governance High-value layer	First-year ARR	15%	18% if sold with PI in same order	50% at order, 50% at activation	Positioned as premium value because governance is an enforcement and accountability layer.
MERIT 2.0 Bundle PI + Governance + I4DM	Total first-year contract value	16%	20% for 3-module+ package with annual prepay	According to collected cash	Encourages full-platform storytelling and rewards selling the operating model, not just visibility.
Implementation / Services Attach revenue	Services revenue collected	8%	10% if services sold at target gross margin	As cash is collected	Can include integration setup, migration, ERP connectors, machine onboarding, and training.
Renewal Retention	Renewed ARR under assigned rep	3%	5% if account also expands in same term	After renewal payment	Keeps reps engaged in account health and protects against “sell and disappear” behavior.
Expansion / Cross-Sell Land and expand	Incremental new ARR only	15%	18% for module expansion into second plant	Upon activation and first payment	Ideal for taking PI customers into Governance, I4DM, scheduling, or broader plant coverage.

Recommended rule: commissions should be calculated on collected revenue, with recurring components annualized for plan credit but paid against cash milestones to protect TSRB during rollout and early-stage implementations. Self-hosted deployments should include the $99/month platform subscription, while TSRB-hosted cloud deployments should include the $10 per machine per month hosting add-on. Both of those hosting-related charges, along with any cloud overage billing, are non-commissionable.

2) Performance accelerators

Accelerators should reward reps who move beyond pilots and single-machine wins into repeatable platform sales.

Quarterly quota accelerator

0%–79% of quota: base commission only
80%–99%: +1% on all new ARR sold in quarter
100%–119%: +3% on all new ARR sold in quarter
120%+: +5% on all new ARR sold in quarter

This favors reps who stack multiple deals and keeps commission energy high late in the quarter.

Strategic deal bonuses

New logo bonus: fixed bonus for first sale into a net-new manufacturing logo
Reference account bonus: bonus for accounts that agree to case study, testimonial, or plant tour reference
Multi-site bonus: fixed kicker for second plant won within 12 months
Annual prepay bonus: extra 1%–2% when customer prepays annually

These bonuses align with TSRB’s need for credibility, references, and faster cash conversion.

3) Example payout logic

A practical way to show reps exactly how the matrix turns into earnings.

Scenario	Deal Value	Commission Basis	Rate	Estimated Payout	Comment
PI pilot closes	$2,500 setup fee	Collected setup revenue	10%	$250	Simple payout to reward entry into account.
Local self-hosted platform deployment	$1,000 deployment + $99/month platform fee	Deployment services only	15% on deployment, 0% on platform fee	$150	The $99/month self-hosted platform subscription is required but is non-commissionable.
Add one machine in any environment	$500 deployment + subscription	Deployment services + first-year ARR	15% on deployment, recurring per plan	$75 + recurring commission	The $500 machine deployment fee pays commission in addition to software subscription commission.
Pilot converts to 10-machine PI subscription	$11,400 first-year ARR ($95 × 10 × 12)	Annualized first-year ARR	12%	$1,368	Plus possible pilot conversion kicker.
10 machines hosted by TSRB cloud	$1,200 annual hosting add-on ($10 × 10 × 12)	Hosting add-on only	0%	$0	The cloud hosting add-on is billed to offset infrastructure demands and is non-commissionable.
Add MERIT 2.0 Governance to same 10 machines	$8,400 first-year ARR ($70 × 10 × 12)	Annualized first-year ARR	15%	$1,260	Same-account expansion with higher strategic value.
Sell bundled PI + Governance together	$19,800 first-year ARR	Total first-year contract value	16%	$3,168	Bundle rate encourages full-platform positioning from the start.
Add Bronze service plan	$7,200 services 40 hours at 10% discount	Collected service plan revenue	8%	$576	Bronze Plan from TSRB service offerings. Published hourly rate is $200. Reference pricing
Add Silver service plan	$13,600 services 80 hours at 15% discount	Collected service plan revenue	8%	$1,088	Silver Plan for deeper support, consulting, or custom development alignment.
Add Gold service plan	$19,200 services 120 hours at 20% discount	Collected service plan revenue	8%	$1,536	Gold Plan for larger implementation, technical support, or development engagement.

Recommended policy guardrails

Pay on collected cash, not just booked contracts.
Chargebacks apply for cancellations before minimum term.
House accounts and channel deals should have a separate split policy.
Expansion credit belongs to the rep of record unless reassigned.
Discounts beyond approved thresholds require management approval and may reduce commission rate.
Self-hosted customer environments must include the separate $99/month platform subscription.
TSRB-hosted cloud environments must include the $10 per machine per month hosting add-on.
The $99 platform subscription, the $10 cloud hosting add-on, and any cloud overage billing are non-commissionable.
Platform deployment fees of $1,000 and machine deployment fees of $500 are commissionable at 15%.

Why this structure fits TSRB

Rewards fast pilot conversion without making pilots the end goal.
Pushes salespeople toward recurring revenue and multi-machine adoption.
Recognizes MERIT 2.0 as a premium governance and operating layer.
Supports land-and-expand across PI, Governance, I4DM, and related modules.
Balances aggressive growth with protection for deployment risk and cash flow.