Understand tiered commissions

Summary

Learn how to use tiered commission structures to apply different rates and bonuses based on sale price thresholds. This allows for flexible, performance-based commission calculations.

This article covers:

• About tiered commissions
• Enter a tiered commission structure

About tiered commissions

In addition to simple flat commission structures, Box+Dice supports tiered (performance-based) commissions. These allow you to apply different commission rates at various sale price thresholds, as well as fixed bonuses.

For example, a commission structure may include:

• 2% of the sale price up to $800,000
• 11% of every dollar above $800,000
• A bonus of $7,500 if the sale price reaches $1,000,000

This functionality enables complex commission calculations to be handled automatically within the system.

Enter a tiered commission structure

Example structure:
“2% of the sale price up to $800,000 and 11% of every dollar above that, plus a bonus of $7,500 if the sale price reaches one million dollars” (all ex GST for simplicity).

Example calculation for a sale price of $950,000:

Example calculation for a sale price of $1,100,000:

This functionality makes complex calculations straightforward once configured.

To enter a Tiered commission structure:

• Navigate to the Sales Voucher and enter the sale price in the Commission screen
• Leave the Commission Description blank initially
• Tick the Tiered Commission Structure option
  

• As usual, tick 'Including GST' if required

  2% of the sale price up to $800,000 

• Enter the ceiling sale price and rate for the first commission break 
  
  (note that "And Above" has changed to "Up to")
• 11% of every dollar above $800,000 

• Click Add target value to add the next commission rate - with no Target Value this time as it is uncapped: 
  

  Bonus of $7,500 if the sale price hits one million dollars

• Click Add target value to create a new line, then enter 1000000 in the Target Value column
• Leave the Percent column blank, and enter 7500 in the or Amount column, like this:
  
  The system will automatically calculate the commission based on the structure.
• (Optional) step. In tje first 2 steps, you left the Commission Description blank. You can click the blue text instead and the system will complete the Description for you, or complete/edit it manually
   

A Simpler Example

A structure can be simplified, such as a flat 2% commission with a $5,000 bonus at $1,000,000.