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How Commissions are Calculated: Understanding the Percentage System

In summary, the percentage of commissions is based on how many shows you have submitted in that month.
kylschef
23
Does anyone know how the percentage of commissions is calculated? If I submit a show for 250 in the beginning of the month and then a 800 & 440 show at the end of the month doesn't it go up a certain percentage? I can't find anything, my director says its in my paperwork, but I can't locate.
 
...$1-$749.99 you make 20%
$750-$1249.99 you make 22%
and so on
it's in your cosultant planner,

if you get paid 20% for a show that you submitted at the first of the month and your comission rate ends up being 25% at the end of the month then you get paid an extra 5% on your next check. I hope that makes sense.
 
  • Thread starter
  • #3
Thank you can you tell me where to find it in my planner, was that with my initial consultant agreeement?
 
F-6 under policy and procedures at the top of the page you can also find it in the front of your PC calander they send you
 
  • Thread starter
  • #5
Thanks again!
 
Its also on the back of the SuperStarter program brochure.
 
It is also in the Consultants corner under "Downloads" and then "Monthly Sales Diary"

It is listed at the bottom of the sales diary.:)
 
calculating commissionI'm not too clear on this. I'm hoping someone will be patient with me. Our commission is paid monthly, right?

If I had 4 parties last month of $200, $350, $500 and $600, would I be paid 20% for each of those parties, or would I be paid 23% on ALL of those parties at the end of the month?
 
You are paid monthly, so as long as you submitted all those shows in the same month you will be paid 23% on all of them.

If you received a mid month payment, it may have only been 20% on those first shows, but they will add the 3% on your end of month check.

I hope this makes sense... let me know if I was unclear :D

And Congrats on a great month!
 
  • #10
I got it!

Thank you very much.
 

What is commission calculation?

Commission calculation is the process of determining the amount of money an employee or salesperson earns based on a percentage of the sales or revenue they generate for a company.

How is commission typically calculated?

The most common way to calculate commission is by multiplying a commission rate (usually a percentage) by the total sales or revenue generated by an employee. For example, if an employee has a 10% commission rate and generates $10,000 in sales, their commission would be $1,000.

What factors can affect commission calculation?

The commission rate, sales or revenue generated, and any additional factors such as bonuses or incentives can all affect commission calculation. Other factors may include the type of product or service being sold, the salesperson's role within the company, and any commission caps or limits set by the company.

Are there different types of commission structures?

Yes, there are various types of commission structures, such as straight commission, tiered commission, and residual commission. Straight commission is a set percentage of the sales or revenue generated, while tiered commission offers different rates for different levels of sales. Residual commission is based on ongoing sales or renewals of products or services.

How does commission differ from a salary or hourly wage?

Unlike a salary or hourly wage, commission is typically based on performance and can vary from month to month depending on sales or revenue. Salary and hourly wages are set amounts and do not change based on performance. Additionally, commission may be considered a form of incentive or bonus, while a salary or hourly wage is a guaranteed form of income.

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