Why Did My Commission Get Cut on a $700 Show?

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Discussion Overview

This thread discusses the experiences of participants regarding commission cuts on shows where hosts take advantage of discounts on products. Several participants share their personal experiences with commission calculations and express their feelings about the impact of host specials on their earnings.

Discussion Character

  • Anecdotal
  • Opinion-based
  • Exploratory

Main Points Raised

  • One participant, identifying as a consultant, expressed frustration about receiving commission only on a portion of a $700 show due to a host ordering discounted items.
  • Another participant shared a similar experience, noting that a host's large order resulted in a significantly reduced commission.
  • Some participants mentioned that while it is disappointing to see lower commissions, they recognize that without the host specials, they might not have had the show at all.
  • One participant suggested focusing on commissionable sales rather than total sales to mitigate disappointment.
  • Another participant highlighted the importance of maintaining a positive customer relationship, suggesting that happy customers may return for future business.
  • Some participants noted that they do not mind not receiving commission on host specials, as they feel they benefit from the overall business model and booking opportunities.
  • Several users clarified the commission structure, stating that commissions are not earned on host bonuses or half-price items, but are earned on discounted prices of other items.

Areas of Agreement / Disagreement

Views differ among participants regarding the impact of commission cuts. While some express frustration, others emphasize the benefits of happy customers and future business opportunities. No clear consensus emerges on whether the commission structure is fair.

Contextual Notes

Participants share personal experiences related to commission calculations in the context of host specials and discounts, reflecting a range of feelings about the implications for their business.

Who May Find This Useful

Consultants who have experienced similar issues with commission cuts or are navigating the complexities of host specials may find the shared experiences and perspectives relevant.

redsoxgirl
Messages
1,484
I know people have mentioned it before, but this was my first time so I wanted to complain! ;)

I mentioned last week how I had a $700+ show. Well, that's true, but my commission was on $505 or something because the past host ordered the 7-piece Executive set at 60% off.

I'm really happy that she (and the current host) got those, but it cut my commission a ton!

Oh well. Part of the job I suppose.
 
I know! I had one host order over $1400.00 worth of products retail a few months ago. She got it all for $700.00 and I got commission on about $200.00 of it! Totally sucks! She ordered all cookware sets and knives.
 
I get bummed sometimes about that too. Maybe it will make you feel better if you think of it this way...you might not have even gotten the show if it weren't for the cookware special. No show = $0 commission.
 
it is a bummer but i agree. commission on $200 is better than commission on $0. :D
 
thats why i focus on commissionable sales, instead of total sales. out of sight, out of mind.

hope that helps :-)
 
This was a big problem last year when cookware went on sale.
Sorry to hear this guys.
 
Remember too that you now have a happy customer. She may be back for more and she may give you referrals. Looking at the big picture makes it easier.

Also, the monthly specials are enticements for people to host and those that book FOR the special are bringing you business and contacts you wouldn't have otherwise had.
 
I don't care so much about the comission, but they could at the least give us the points for it - even if is the 50% off point amount. I think you did a good job at the show to get them to a level they could take advantage of the half-off items, you should get rewarded for it in some fashion. Besides, who couldn't use more points towards the trips.
 
I agree that it is a bummer!! I think we should at least earn half commission or some % of commission b/c without us the sale would not have been made.

And I realize that we work for a great company and the specials are to get bookins and all that stuff, but it is still discouraging when this happens b/c without us doing our job the stuff would not have sold in the first place. And I think if we earned something for the half price items and specials we would push them more too. I have some host who do not use them and I do point them out to them, but I have had some comment that they do not think it is fair that I do not make anything off them since I am doing the show.
 
Look at it this way--at least you aren't paying for host specials out of your own pocket. That's what consultants with a lot of DS companies have to do.
 
raebates said:
Look at it this way--at least you aren't paying for host specials out of your own pocket. That's what consultants with a lot of DS companies have to do.

This is so true! I have a friend who just got out of Lia Sophia and she told me she didn't make any money after having to shell out for the host special and all the other little things...oh, she also said she has to pay $6 to submit her orders! :yuck:
 
A lot of other DS consultants have to pay a premium for each customer who uses a credit card, too. PC rocks!
 
raebates said:
Look at it this way--at least you aren't paying for host specials out of your own pocket. That's what consultants with a lot of DS companies have to do.

I was talking to my host from Monday about this same issue. She indicated that our commission rate was low compared to another DS company. I explained, that PC doesn't make us pay for the host specials, if an item get's returned, it is not taken out of our commission, etc.

She is now thinking real seriously about starting her PC biz. Her DH was the one who told her she would be good at it and started asking me the questions.
 
pamperedpals said:
I was talking to my host from Monday about this same issue. She indicated that our commission rate was low compared to another DS company. I explained, that PC doesn't make us pay for the host specials, if an item get's returned, it is not taken out of our commission, etc.

She is now thinking real seriously about starting her PC biz. Her DH was the one who told her she would be good at it and started asking me the questions.

dont lose hold of that one!
ofcourse - if you are too busy........im another consultant in the area ;):p
 
I thought we got commission on the actual selling price of host specials.... for example if a special was originally $100 at 60% off it would be $40 and we would get paid on that amount. Am I correct on this?

How does it work with the PHD?
 
Nope. We don't get commission on host bonuses, half-price items or booking bonus purchases. We DO get commission on the discounted price of other items on the host order, as well as discounted items purchased with a PHD.It's on page 7 of the policies.
 
raebates said:
A lot of other DS consultants have to pay a premium for each customer who uses a credit card, too.

PC rocks!

Yep! I agree! :D

It really doesn't bother me that I don't get commission on host specials. I figure I get a lot from PC to begin with and it's an awesome booking tool. Because, after all, it's all about the host and customers! Once you get in that mind set, you will reap the rewards in the end! :)
 
chefann said:
Nope. We don't get commission on host bonuses, half-price items or booking bonus purchases. We DO get commission on the discounted price of other items on the host order, as well as discounted items purchased with a PHD.

It's on page 7 of the policies.

Thanks for clearing that up Ann! :)
 
redsoxgirl said:
I know people have mentioned it before, but this was my first time so I wanted to complain! ;)

I mentioned last week how I had a $700+ show. Well, that's true, but my commission was on $505 or something because the past host ordered the 7-piece Executive set at 60% off.

I'm really happy that she (and the current host) got those, but it cut my commission a ton!

Oh well. Part of the job I suppose.

I KNOW!! It;s my first time, too... I had an 800+ show last week.. but the host and the past host both ordered the 7 piece exec. cookware set.. so it cut my commish back $300.. HOW AGGRAVATING!!!
 
but I do love The Pampered Chef!!!
 
Make sure you do your followup phone calls with them. Then at future shows, put them in the spotlight. "I could tell you all about how great our cookware is, but Jenny just got it last month and I want you to hear what she thinks!" Others will buy cookware fullprice or book for the discount because they realize we offer a product that is superior to what they have at home.

Not necessarily great for a recruiting tool, but you have to be amazed when you have a host who saves more money than you make on a show! Feel good that you made such a positive impact in her kitchen AND made money, had fun, got to meet new people, etc with her show.
 

Frequently Asked Questions

Why did my commission get cut on a $700 show?

Your commission may have been cut due to various factors, such as discounts applied to the show, returns, or adjustments for host rewards. It's important to review the show details to understand any deductions that may have occurred.

Are there specific commission rates for different products?

Yes, commission rates can vary based on the product categories sold during the show. Some items may have a lower commission percentage, which could affect your overall earnings from the show.

Could customer returns affect my commission?

Absolutely. If a customer returns an item from the show, your commission will be adjusted accordingly. This is because commissions are typically calculated based on the final sales amount after returns.

What are host rewards and how do they impact my commission?

Host rewards are discounts or free products given to the host based on the total sales of the show. These rewards can reduce the total sales amount used to calculate your commission, leading to a lower payout.

How can I avoid commission cuts in future shows?

To minimize commission cuts, ensure that you clearly communicate with your customers about the return policy and encourage them to keep their purchases. Additionally, consider promoting products with higher commission rates and managing host rewards effectively.

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