A float commission is one where the commission amount floats based on the amount of sales that the employee brings in. It is used to increase product sales and room surcharge upgrades for tanning client.
First create the Float Commission.
- Click Setup.
- Click Commission Profiles on the left side.
- Click Add Float on the left side.
- Click Blank Template unless you already have another profile you want to use as a template.
- Click OK.
- Give the Profile a name.
- The For will be the "Person" side of the average. You have the following options to choose from:
- Select either Calculate Commission based off Highest Matching Commission Step or Calculate Commission based on All Commission Steps. The example buttons give an explanation repeated at the bottom of the page.
- Click Save.
Next Assign the Commission Steps to the Commission Profile
- Click New Step.
- A new window will appear asking you to enter Sales steps and Commission rates. On the right column we have series of steps that will determine the commission that the employees will receive.
- We will setup series of commission steps that will control how much commission our employees make on sales.
- From: This is the starting dollar amount that the commission will begin calculating the step.
- To: This is the dollar amount that the commission rate ends at (Note: a dollar amount must be entered in this field; it can not be infinite). You can put in a dollar amount that you will never be reached such as $100,000.
- Commission Dollar: This gives the employee a flat amount for getting to that step. It can be used as bonuses for reaching stretch goals.
- Commission Percent:This gives the employee a percentage of their total sales.
- Click Save a repeat for the next step.
Examples of how commission steps are calculated.
The image below gives an example of Float commission steps. The employees receives a 10% commission for products sold up to $100.00. Once they go over $100.00, they receive a commission of 20%. As the employee reach each of the steps, their commission "floats" to the next step.At that point they will receive a 10.00% commission of items sold. If they reach $250.00 in sales, they will receive a 20.00% commission.
You can also choose to have the the steps to be calculated on all steps. In the example below the employee total sales of $250.00. They would receive 10.00% of the first $100.00 in sales, plus 15% second $100.00, and 20% of the remaining $10.00. The employee would earn a total of $35.00.