Understanding commission structures

Commission types and rates

Default commission rates are set at the category level. The "rate" consists of two components: "commission type" and "commission value". These two values work together to calculate the commission that sales reps receive for selling a particular item or service.

Commission rate structures are set in the General section of the category detail screen. See sample below. 

Commission_DD.png

 

Commission Types and their Commission Values

The Comm Type is a drop-down list from which you select the type of commission structure you want. The Comm Val field holds the value that works with the Comm Type when calculating the final default commission. There are three choices for Comm Type.

Fixed Amount
This selection sets the Comm Value as-is. For example, selecting a Comm Type of Fixed Amount and entering a Comm Value of 10.00 will set a default commission to 10.00 per unit sold. The default amount will not change unless you change it manually.

% of Price

This selection will calculate the commission amount by multiplying the Comm Value by the selling price. If prices change–including price changes at the order level if users have that ability–the payout will adjust automatically.

% of Margin

This selection will calculate the commission amount by multiplying the Comm Value by the category's gross profit margin. If pricing changes, the payout will adjust automatically.


See Also

Working with volume commissions

Have more questions? Submit a request
Powered by Zendesk