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 amount above that previous tier receives that level of commission
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
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= 499.99 x 25% (first tier) + ($1000.01 x 30% (second tier))= $424.98
4th pay cycle= (499.99 x 25%(first tier)+ ($2499.99 x 30% (second tier)) + ($2000.02 x 40% (third tier))= $1675.00
The total compensation in 4 pay cycles= $2224.98
Product Commissions are calculated separately, and you will need to set the tiered rates as desired.