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Tiered Commission by Revenue Breakdown

The tiered commission is calculated using the following: $X in service/product revenue per [week/month], the commission is X%; If you make up to $Y per [week/month], the commission is Y%.

When your staff member reaches the next tier, the higher commission level is applied to all revenue for the measurement period.

 

For example, we have set up the following tiers for this staff member: 

$0-$499.99 will receive 25% of the revenue earned

$500-$2999.99 will receive 30% of the revenue earned

$3000+ will receive 40% of the revenue earned

The Pay Cycle is set to two weeks. This staff member will have that whole pay cycle to reach these tiered rates

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We will now look at how the commission will apply for 2 months of pay cycles for this staff member.

1st pay cycle= $400 in service revenue

2nd pay cycle= $100 in service revenue

3rd pay cycle= $1500 in service revenue

4th pay cycle= $5000 in service revenue

 

The total compensation for this staff member is as follows:

1st pay cycle = $400 x 25% (first tier)=$100

2nd pay cycle = $100 x 25% (first tier)=$25

3rd pay cycle= $1500 x 30% (second tier)=$450

4th pay cycle= $5000 x 40% (third tier)= $2000

The total compensation in 4 pay cycles= $2575

 

Product Commissions are calculated separately, and you will need to set the tiered rates as desired. 

 

Membership (If Applicable), Package and Gift Card commissions are only set as straight commissions.

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