Example Commission Calculation Scenarios

Out of the box improveit 360 commission tracking is manual. Some commission structures can be partially or fully automated with custom configuration set up by the i360 Configuration team. If you are interested in your commission structure being configured in i360, please provide examples and documentation of your commission structure and payout process. Below are two different Commission Structure examples. 

Example A: Over/Under PAR Commission Structure

Requirements:

• Our company pays a flat 10% commission on all sales.
• If a sales rep sells over the target price that we’ve defined, we want them to get 50% of the overage in commission. However, in order to make sure they aren’t price gouging, we want to cap this, so they only earn commission on the overage up to 20% over the target price.
• Conversely, if a sales rep sells under the target price that we’ve defined, we want to subtract from their base commission 50% of the amount that they sold under what they should

Example:

Sold Price: $10,000

Commission Basis: $9,200

Non-Commissionable Amount: $200

Base Commission Calculation

(Base Percent * Commission Basis)

10% * $9,200 = $920

Overage Commission Calculation

(Sold Price – Commission Basis – Non Commissionable Amount) * Over Split Percent

$10,000 – $9,200 = $800

$800 – $200 = $600

50% * $600 = $300

Total Commission Earned = $1,220

Illustration:

Example B: Percentage Assigned based on Products Sold

This Commission Structure is based on the tenure of the employee (determined by the Start Date on their Staff record), the Percent Discount given on the Sale and the Product type that was sold. A different Percentage is applied based on these three (3) factors.