Intro – Commission Plan #
A commission plan is a powerful tool that lets you design and implement your own advanced commission system. Each plan has a valid period determined by an effective date and an expiry date. You can create a new plan in advance before the current active one expires.
Commission plan features include
- Tier commission
- Different rate or flat amount on each tier
- Sales Quota + Attainment
- Monthly Sales Quota (January – December)
- Sales Team + Sales Splits
- Multiple plans. Employee earns commission from single or multiple plans.
- One rep or team can have multiple commission plans assigned.
- Set plan over specific target including sales territory, specific customer or specific item.
Create a New Commission Plan #
- Go to Sales Performance on the left sidebar, and select Commission Plan
- Click Add New button.
- Fill in the following fields
- Plan Name: Enter a descriptive plan name.
- Effective and Expiry Date: Use these to set the active time frame.
- Commission Method: Choose one of following
- Percentage Commission: This is a single, flat commission rate applied to all sales. No minimum sales targets are set, and the rate doesn’t change even if a sales representative achieves a high sales volume.
- Tiered Commission: This is a compensation structure where the commission rate or percentage earned by sales rep increases as they achieve higher levels of performance or sales volume.
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- Plan Type: Does the plan focus on specific items or customers?
- General: This plan applies to any product items and any customers.
- Specific: Choose this option when the plan applies to specific items or customers. You must also specify only of following
- Sales Territory
- Segment / Industry
- Specific Customer
- Product Category
- Brand
- Specific Product Item
- Plan Type: Does the plan focus on specific items or customers?
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- Percentage Tab: If the commission method is ‘Percentage Commission’ fill the following fields
- Commission Rate %: Enter the rate used for calculation.
- Commission Base: Select the base amount type
- Gross Sales
- Net Sales
- Gross Profit
- Percentage Tab: If the commission method is ‘Percentage Commission’ fill the following fields
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- Tiers Tab: If the commission method is ‘Tiered Commission’, there are multiple level of sales performance. The commission rate typically increases with each subsequent tier. It is designed to strongly motivate sales rep to exceed their initial targets and continuously push for higher performance.
- Monthly Quota: Select this option if your company has specific sales quotas or targets that vary from month to month. Don’t select it if your sales quota or target remains the same for every month. If this option is selected, you need to enter monthly sales quota amount (January – December) in ‘Monthly Quota’ tab.
- Max Sales or Attainment %:
- Max Sales: If ‘Monthly Quota’ is off, enter maximum sales volume in this tier.
- Attainment %: If ‘Monthly Quota’ is on, enter attainment percentage not the sales volume. Attainment is calculated as: (Sales volume achieved Sales quota) 100.
- Rate %: Enter commission rate of this tier.
- Flat $: You can enter a fixed dollar amount instead of commission rate.
- Tiers Tab: If the commission method is ‘Tiered Commission’, there are multiple level of sales performance. The commission rate typically increases with each subsequent tier. It is designed to strongly motivate sales rep to exceed their initial targets and continuously push for higher performance.
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- Assign To:
- Everyone: Check is checkbox if the plan is applied to all sales reps.
- Sales rep and Team: Enter sales rep or sales team if the plan is not for everyone.
- Assign To:
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- Click Save button
