For businesses that offer classes and events, you have the ability to set up staff compensation payable based on classes and/or attendance. The compensation structure can be set up as straight commission, tiered commission by revenue, tiered commission by attendees, or tiered commission by sessions
In this article, we will review how to set up compensation for classes and how each is calculated.
Things to know:
- The commission is calculated only for checked-in or paid attendees for a class session.
- The rate can be either a percentage of the class revenue or a fixed dollar amount.
- Straight Commission - Pay staff a straight percentage or flat commission per checked-in or paid attendee in a session.
- Tiered Commission by Revenue - Commission is calculated on the total revenue earned from all checked-in or paid attendees in a session. It can be based on the entire class revenue generated in the period or just the amount above the tier. You can set the base rate that the commission is paid for the first tier and then add as many tiers as you like.
- All Revenue Earned - Applies only one tier, the one which matches the overall revenue. Commission will be calculated as total revenue x tier %.
- Amount Above Earned - Applies an incremental commission for each revenue threshold achieved. Commission will be calculated as revenue - tier threshold x tier %
- Tiered Commission by Attendees - Commission is calculated based on the number of checked-in or paid attendees in a class session per pay cycle. You can set the base rate that the commission is paid on for the first tier and then add as many tiers as you like.
- Tiered Commission by Sessions - Commission is calculated based on the number of class sessions conducted per pay cycle. You can set the base rate that the commission is paid on for the first tier and then add as many tiers as you like.
- If the attendee has a membership where the class is free, the commission can be based on the regular class price or on the internal price set on the membership configuration interface.
Setup Commission
To set up compensation for classes:
- Navigate to Business Setup > Staff & Availability
- Select the desired staff member
- Scroll down to the Compensation Reporting > Classes Commission section
We will now look at how the commission is calculated for all options.
Straight Commission
Setup:
Staff Member - Alexis
Commission structure - 20% per attendee
# of Attendees - 3
# of Attendees checked-in or paid for their session - 2
Revenue per attendee - $60
Total commission for Alexis for the period will be:
Checked-in Attendee - $60 x 0.2 = $12
Paid Attendee - $60 x 0.2 = $12
Total commission $24
Tiered Commission by Revenue: All Revenue Earned
Setup:
Staff Member - Grace
Commission Tiers:
Above $0 per pay cycle then pay 25% of the revenue earned
Above $200 per pay cycle then pay 30% of the revenue earned
Above $300 per pay cycle then pay 35% of the revenue earned
# of Attendees - 5
Revenue per attendee - $60
Total class revenue - $60 x 5 = $300
Total commission for Grace for the period will be:
$300 x 0.35 = $105
Tiered Commission by Revenue: Amount Above Earned
Setup:
Pay Cycle - Weekly
Staff Member - Lewis
Commission Tiers:
Above $0 per pay cycle then pay 25% of the revenue earned
Above $200 per pay cycle then pay 30% of the revenue earned
Above $300 per pay cycle then pay 35% of the revenue earned
# of Attendees - 5
Revenue per attendee - $60
Total class revenue - $60 x 5 = $300
Total commission for Lewis for the period will be:
1st tier - $200 x 0.25 = $50
2nd tier - $100 x 0.3 = $30
Total commission - $50 + $30 = $80
Tiered Commission by Attendees
Setup:
Staff Member - Jennifer
Commission Tiers:
Above 2 attendees per pay cycle then pay 25% of the class revenue
Above 4 attendees per pay cycle then pay 30% of the class revenue
Above 10 attendees per pay cycle then pay 35% of the class revenue
# of Attendees - 3
Revenue per attendee - $60
Total class revenue - $60 x 3 = $180
Total commission for Jennifer for the period will be:
$180 x 0.25 = $45
Tiered Commission by Sessions
Setup:
Staff Member - Alicia
Commission Tiers:
Above 2 class sessions per pay cycle then pay 25% of the class revenue
Above 5 class sessions per pay cycle then pay 30% of the class revenue
Above 8 class sessions per pay cycle then pay 35% of the class revenue
# of Class sessions - 2
Number of attendees - 4 (2 per session)
Revenue per attendee - $60
Session 1 - $60 x 2 = $120
Session 2 - $60 x 2 = $120
Total class revenue - $240
Total commission for Alicia for the period will be:
$240 x 0.25 = $60
If you have any questions, please contact our Support Team at support@mytime.com.