Typically, your commission will be paid based on whatever sales you made in the preceding commission period. For example, if you made several sales in January, you may not receive your commission until February. [1] X Research source Depending on how the business operates, there may be other factors that delay your commission. For example, some companies will not pay you your commission until after they receive full payment from the customer for the sale or service. [2] X Research source
If you’re paid a different commission rate for different products, calculate the total commission base by-product. For example, if you sold an equal amount of 2 products but they have different commission rates, note that you sold $15,000 of Product A and $15,000 of Product B.
In some cases, you may need to calculate the original sale amount based on your commission. Assuming your commission is a straightforward percentage of the commission base, you can figure this out by dividing the amount of your commission by commission rate (e. g. , $1,500/. 05 = $30,000).
For example, say you sold $15,000 of Product A at a 3% commission rate and $15,000 of Product B at a 6% commission rate. Your commission payment for Product A is $450, your commission payment for Product B is $900, and your total commission payment is $1,350.
In other cases, the override rate may apply retroactively to your entire commission base for the period. For example, if your rate goes up from 4% to 5% if you make more than $30,000 in sales, the 5% rate may apply to your entire commission base for the period if you exceed your quota. [6] X Research source
For example, if you know that your commissions were the top-scoring numbers for a department or team, you may be eligible for top-performance bonuses.
For example, if you sold $30,000 worth of merchandise during your commission period, but customers return $600 worth of that merchandise, $600 may be subtracted from your commission base.
Ask if there are any products or services excluded from the commission plan. A company may pay you a commission for selling certain products and services but not others.
The company may set different commission rates for different types of products. For example, it may pay 6% commission on a product that’s hard to sell and only 4% commission on a product that’s easy to sell.
In a tier-based commission system, for example, your commission rate might increase to 7% after you sell $50,000 worth of product. Some commission plans may involve splitting the commission if you make a sale or complete a project jointly with another employee.
