How Does Commission Work with Gift Certificates?

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Discussion Overview

This thread explores questions and experiences related to the commission structure for gift certificates within the Pampered Chef consultant framework. Participants share their understanding of how commissions are applied when gift certificates are sold and redeemed.

Discussion Character

  • Exploratory
  • Opinion-based
  • Anecdotal

Main Points Raised

  • One participant, identifying as a consultant, expresses excitement about placing a large order and inquires about the commission on gift certificates, specifically whether it is received immediately or upon redemption.
  • Another participant shares their experience, stating that commission on gift certificates is received right away and that they must be redeemed through the Home Office, not through a consultant.
  • Several users mention concerns about how orders exceeding the gift certificate amount are handled, questioning whether the additional commission goes to the consultant who sold the gift certificate.
  • One participant notes that redeeming a gift certificate through a consultant would be considered "double dipping," implying that the commission structure does not allow for this scenario.
  • Another participant reflects on the fairness of the commission structure, suggesting it would be beneficial if the difference in price for orders exceeding the gift certificate amount could be credited to the consultant who sold the gift certificate.

Areas of Agreement / Disagreement

Participants generally agree that commission on gift certificates is received immediately and must be redeemed through the Home Office. However, there is no clear consensus on how additional commissions are handled when orders exceed the gift certificate value, with differing opinions on the implications of "double dipping."

Contextual Notes

The discussion primarily revolves around the commission structure for gift certificates and the implications for consultants, particularly those who are new to the business.

Who May Find This Useful

Consultants seeking to understand the commission mechanics related to gift certificates may find this discussion relevant, especially those in their early stages of business.

Andreamd8
Silver Member
Messages
55
Hi There...I'm going to be putting a large Christmas order in this week for a family member (and it will be my first order...yay!!!!) Anyways, she wants to buy a lot of gift certificates from me. I know I can put them into the pampered plus thing to order them, but here's the questions:

1. Do I get the commission on them immediately like any other order, or do I have to wait until the person redeems them???

2. And does the person have to redeem them through me, or can they go through anyone???

3. I'm trying to get my sales high for my first 30 days...will the gift certi. go towards my commissionable sales for it since the person won't redeem it until after christmas???

Thanks in advance :)
 
You get commission on them right away.They must be redeemed through HO, not through a consultant or at a show.They do count as commissionable sales for you (the original purchase of the certificates, not the redemption).
 
  • Thread starter
  • #3
what if the person that redeems it wants products than what the amount of the gift. cert. is for??? Can they order it from me? I haven't qualified yet, so they can't order it online from me...so how would that work?
 
  • Thread starter
  • #4
what if the person that redeems the gift. cert. wants products that what the amount of the gift cert. if for? can they order it from me??? I haven't qualified yet, so they order it online from me...so how would that work???
 
Andreamd8 said:
what if the person that redeems the gift. cert. wants products that what the amount of the gift cert. if for? can they order it from me??? I haven't qualified yet, so they order it online from me...so how would that work???

No, they have to redeem them online...to order from you would be "double dipping". You already made commission on the sale of the gift certificate. Does that make sense?
 
A person can't redeem a PC Gift Certificate through a consultant. They must go through the Home Office. If their order total is more than the Gift Certificate, they can pay the difference.
 
  • Thread starter
  • #7
yeah...that makes sense about "double dipping"...but it is odd to me that she can't order from me to order stuff that would be more than the cost of the gift. cert. like if the person has a $50 gift. cert, but they order $100 worth of product...who gets that extra commission?
 
Andreamd8 said:
yeah...that makes sense about "double dipping"...but it is odd to me that she can't order from me to order stuff that would be more than the cost of the gift. cert. like if the person has a $50 gift. cert, but they order $100 worth of product...who gets that extra commission?


The Berkshire-Hathaway company? :rolleyes:
 
Andreamd8 said:
yeah...that makes sense about "double dipping"...but it is odd to me that she can't order from me to order stuff that would be more than the cost of the gift. cert. like if the person has a $50 gift. cert, but they order $100 worth of product...who gets that extra commission?

It would be nice if there were a rollover from the difference added to the consultant who sold the GC's commission...

I guess it would work the same as a gift card though... it someone at a store sold a gift card and she worked on commission, she'd get commission on the amount sold... then if the customer came in and spent more, would she get the additional commission? Hmmmm....
 

Frequently Asked Questions

How is commission calculated on sales made with gift certificates?

Commission on sales made with gift certificates is typically calculated based on the total value of the products purchased, excluding the value of the gift certificate itself. For example, if a customer uses a $50 gift certificate to buy $100 worth of products, the commission will be based on the $100 sale.

Do I earn commission on gift certificates sold?

No, consultants do not earn commission on the sale of gift certificates themselves. Commission is only earned on the products purchased using the gift certificates.

What happens if a customer returns products purchased with a gift certificate?

If a customer returns products that were purchased with a gift certificate, the commission earned on that sale may be adjusted or deducted from the consultant's earnings. The value of the returned items will be subtracted from the total sales for commission calculations.

Can gift certificates be used for commissionable sales?

Yes, when customers use gift certificates to purchase products, those sales can be considered commissionable as long as the total sale amount exceeds the value of the gift certificate. The consultant will earn commission on the total sale amount minus the gift certificate value.

Are there any limits on how gift certificates can affect my commission?

Yes, there may be limits based on company policies regarding how gift certificates impact commission. It's important to review the specific guidelines provided by Pampered Chef to understand how they handle gift certificates in relation to commission calculations.

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