Graduating Commission Plans

On a Graduating commission plan, salespeople earn a higher commission rate as they move up tiers. Tiers can be based on memberships sold or on conversion rate (new memberships ÷ retail cars). At the end of each reset period, every salesperson goes back to the bottom tier.

For example, a commission plan based on memberships sold could pay:

• 0+ Memberships: $3 per membership
• 50+ Memberships: $4 per membership
• 100+ Memberships: $5 per membership

A commission plan based on conversion rate could pay:

• Base (0%+): $3 per membership
• 12%+ Conversion: $4 per membership
• 18%+ Conversion: $5 per membership

For example, a salesperson who ends a monthly period with a 15% conversion rate lands in the 12%+ tier. They earn $4 for every membership they sold that month.

Tiers can reset Daily, Weekly, Biweekly, or Monthly. Monthly is the most common.

CoachBot lets salespeople know when they’re close to the next tier and when they move up. Each salesperson’s current tier also shows on their dashboard.

Set up a graduating commission plan based on memberships sold

Step 1: Create the plan

1. Go to Settings > Commission Plans, then select Create Plan.
2. Enter a Name for the plan.
3. Under Type, select Graduating.
4. Under Tier Basis, select Membership.
5. In the Reset field, choose Daily, Weekly, Biweekly, or Monthly.
6. If you chose Weekly or Biweekly, pick the date your reset period starts. Line it up with your pay weeks.
7. Select Submit.

Step 2: Add tiers

1. Select Add Tier.
2. Enter a tier name, such as 0+ Memberships.
3. Enter the minimum number of memberships for the tier, such as 0. The lowest tier must start at 0.
4. Select Save.
5. Repeat for each tier. For example, a second tier named 50 or above has a minimum of 50.

Step 3: Add commission items

Add commission items as described in How to Create Salespath Commission Plans, and select the Tier for each item. Each tier needs its own copy of an item. For example, Basic Membership might earn 10 points at the 0+ tier and 20 points at the 50+ tier. For details on each field, see Commission Item Settings.

Set up a graduating commission plan based on conversion rate

On a conversion rate plan, a salesperson’s tier is set by their conversion rate over the reset period. Tiers reset on a schedule, just like on a plan based on memberships sold.

Step 1: Create the plan

1. Go to Settings > Commission Plans, then select Create Plan.
2. Enter a Name for the plan.
3. Under Type, select Graduating.
4. Under Tier Basis, select Conversion Rate.
5. In the Reset field, choose Daily, Weekly, Biweekly, or Monthly.
6. If you chose Weekly or Biweekly, pick the date your reset period starts. Line it up with your pay weeks. For example, if a biweekly period starts on Monday, November 9, it runs through Sunday, November 22, and the next period starts on November 23.
   
7. Select Submit.

Step 2: Add tiers

Every salesperson starts in the base tier. Its threshold is fixed at 0%. You can rename the base tier, but you can’t change its threshold.

1. Select Add Tier.
2. Enter a tier name and the minimum conversion rate for the tier, such as 12%.
3. Select Save.
4. Repeat for each tier.

Step 3: Add commission items

Add commission items as described in How to Create Salespath Commission Plans, and select the Tier for each item. Deferred commissions work the same way as on any other plan.

How payouts work

• A salesperson’s conversion rate isn’t final until the reset period ends. Until then, Salespath holds back their final commission, points, and XP.
• The day after the period ends, Salespath checks the salesperson’s conversion rate for the whole period and sets their final tier. Points and XP are awarded at that tier, and the period’s commission is locked to that final conversion rate.
• Deferred payouts wait until the period is settled. See Deferred Commissions.