Commissions are a tried and tested way to motivate sales teams. They are most effective when a salesperson can see how much they are going to pocket at the end of the month or quarter.
The challenge is that knowing what to pay each salesperson. This can require a little maths, which is difficult to do in some inventory apps such as Unleashed Software.
You don’t pay commission on freight, so that number has to come out from each sale. You also don’t pay commissions on any samples or promotional stock, which has a stock value in Unleashed. So that needs to come off too. And if a customer decides to return products then the commission needs to reduce (the following period) accordingly.
Problem: You can’t do complicated calculations in Unleashed to work out commissions, like removing freight, samples and returns.
Solution: The easiest and fastest way to calculate commissions is to do it in a business intelligence (BI) dashboard. We just transfer to the dashboard the same rules and logic that you apply in Excel to calculate the commissions.
Result: Now you can look at your dashboard and see instantly how much you have to pay each salesperson each month. The dashboard will show the commission after removing all samples, promotions, freight and returns. If you combine this with personalised sales dashboards (LINK), you can show each salesperson their commission in real time.
And that’s a great way to incentivise your team to close deals before the end of each month, hit their targets and maximise their commissions.