The discussion clarifies that when a customer uses their PHD (Personal Host Discount) on an order, the PHD amount is deducted from both guest and commissionable sales, impacting the total commission calculation. The PHD does not affect the entire order value but specifically reduces the commissionable portion. Additionally, past host special orders do not contribute to commissionable sales at all. This distinction is crucial for accurate sales reporting and commission tracking.
PREREQUISITESSales professionals, commission-based employees, and managers involved in sales reporting and commission calculations will benefit from this discussion.
Yes, PHDs (Personal Host Discounts) can affect commissionable sales. When a consultant uses a PHD to purchase products, the amount of the discount is deducted from the total sales, which can lower the commissionable sales amount for that transaction.
PHDs are calculated based on the total sales generated by a host party. The discount is applied to the consultant's purchase, which reduces the overall sales figure that is used to calculate commissions.
Yes, you can still earn commission when using a PHD, but the commission will be calculated on the net sales after the PHD has been applied. This means your commission may be lower than if you had not used the discount.
There are no specific limits to the number of PHDs a consultant can use, but excessive use may affect overall commissionable sales and could raise questions about sales practices. It's important to use PHDs judiciously to maintain a healthy commission structure.
To maximize commissionable sales while using PHDs, focus on increasing overall sales volume by hosting more parties and encouraging higher sales from hosts. Additionally, consider using PHDs strategically on products that do not significantly impact your commissionable sales.