📣How to calculate sales commission : commission payment system

📣How to calculate sales commission : commission payment system

commission It is a guideline used to stimulate sales. to sell more products and services But if any work requires unity in the group or team as well The weight of teamwork should be paid in commissions. Therefore, the allocation must be allocated to one team's commission and another individual's commission.

Because many companies often charge different salespeople. Some organizations think it's simple and uncomplicated, such as earning a percentage of commission based on sales. or pay the commission by steps, etc.

In this article, there is a simple way to charge commissions. that is fair and uncomplicated Benefit that is perfect for both parties between you and the salesperson. Most importantly, it can reduce business risks that occur as well.

1. Pay by balance

Businesses with high profits per sale, such as industrial manufacturing plants. Technology Innovation Owner Group Construction group, etc., where the owner talked to the finance department and found that the profit is high, more than 50% after deducting all costs. would make the commission charge There are several options. How to pay the commission According to the top, there is an example as follows:

- Pay as a percentage of sales, for example, sales of 1 million baht, you will pay 3%, cells get 30,000 baht in commissions.

- Paid in cash on a ladder basis, such as sales of 1 million, the seller earns 20,000 baht, if sales of 1.5 million, the seller makes 25,000 baht, etc.

Giving more or less will affect the motivation of the salesperson. But be careful that the commission Too much can cost you too many salespeople benefits. Giving too little can make salespeople uncomfortable, bored, and potentially lose top sellers in case they find a new place that pays more.

2. Pay by balance and by profit

It's a way that's thought up in order to pay for the commission. It is safer and less risky. This is ideal if your business does not have a unit profit greater than 50% or multiple profit variability factors. As a result, you require commissions to be paid on a profit-based basis. This approach carries less financial risk and allows the salesperson to help you protect your company's profits in another way. For example:

- The target of sales of 1 million baht (100% total) must be more than 30% profit (300,000 baht profit) in order to pay the commission. It is a 5% percent of profits, the seller will receive a commission of 15,000 baht.

- If the profit is below 30%, the commission may be adjusted down to 4% (25%), 3% (20%), 2% (15%) respectively.

- But if the profit is too low Managers may suspend sellers from making less profitable offers.

This is a great way to assure the owner or manager that each sale will have a profit remaining after the distribution of the benefit has been paid to the seller. And selling at such a high price that you have to compete fiercely with competitors will also allow you to maintain massive profits.

3. Pay by type of business

If your business is going to kill it Hunt for new things all the time. You will be required to provide a commission. with salespeople opening up more sales to new customers than usual in order to pay them commensurate The sale of existing customers increases. You may adjust the commission. to have a reduced proportion from the original In order for salespeople to focus on finding new customers. Otherwise, salespeople will act like "sleeping tigers" if they have a fairly large base of existing customers. Or if they are key account managers, you hire them to maintain your base and sell more. Sales Representative) is less than that.

which this concept is a mixture between Compensation for team members and individual commissions It combines the strategic concept of Win-Win Situation. The company still pays the same commission. But can manage the team, build a team and motivate each person's work as well.

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