Tiered commission pay

Hi!

After taking a few weeks break, I've been trying for a several hours to build an Excel Spreadsheet for a Tiered Bonus System... but now, it needs to be done.

I figured out how to do a "simple" Tiered Bonus System following the advice that I found on the web and or the forum here but where it gets complicated is the way I want to do my commission structure.

(The following are fictitious salaries used for example purposes)

I want to build an Excel Spreadsheet where the Tiered Bonus System is Variable with the Salary earned.
So if the guy that earns a salary of $50,000 makes $100,000 in sales, I want him to get remunerated the same way as the guy who earns $100,000 in salary or the guy that decide not to take a salary.
What happens when I do it on Excel, is YES, I'm able to get the same value for each Tier but when they add up, the value of "money" is not the same.

In addition to this, I'm trying to plug-in a Quarterly Quota in the Spreadsheet... So if the Quota is met one Quarter, you get the salary but if 2 quarters later you're a quarter behind, you have to fulfill your previous number and the on-going one to get the commission... but that.. that's another story.

Maybe I'm not clear or I'm trying to do something too complicated or I'm asking too much, I don't know but I have an headache now... I really need someones help. I know for someone, figuring this thing out is not as complicated as it is for me..

Thank you.

Mathieu

Welcome to the forum!

Firstly, remove your E-mail address from your location (if you don't want to be inundated with SPAM) and replace it with a general location (e.g. US, UK, Europe, etc.).

Then please attach a sample Excel workbook? We are not able to work with or manipulate a picture of one and nobody wants to have to recreate your data from scratch.

1. Make sure that your sample data are REPRESENTATIVE of your real data. The use of unrepresentative data is very frustrating and can lead to long delays in reaching a solution.

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3. Make sure that all confidential data is removed or replaced with dummy data first (e.g. names, addresses, E-mails, etc.).

4. Try to avoid using merged cells as they cause lots of problems.

Unfortunately the attachment icon doesn't work at the moment, so to attach an Excel file you have to do the following: just before posting, scroll down to Go Advanced and then scroll down to Manage Attachments. Now follow the instructions at the top of that screen.

Please pay particular attention to point 2 (above): without an idea of your intended outcomes, it is often very difficult to offer appropriate advice.

I have removed the email from your "Location", Ali is correct in her comment. Please update your profile as necessary to properly reflect at least the country you are in, members tailor answers based on your regional settings.

I don't understand the concept. What exactly does this mean?

So the person that makes a salary of $100,000 per year and just made $6,000,000 in sales end up making the same amount of money (after commission) as the person that makes a salary of $50,000 or the person that decided not to take a salary at all.

So a person who has a salary of $50k, a sales value of $6m, and earned $13k of commission would have a final payout of $63k.
You would like all your salespersons to earn the same amount in total after commission if they achieved the same sales value... So how much would a person with a $100k salary and a sales value of $6m get in total when compared against the first person's payout of $63k? Would they earn less than their salary, or would the first person's payout be inflated as if they were on $100k? What if a salesperson joined and had a salary of $300k, would everyone get a payrise?
I don't get the logic, sorry.

That's precisely what I was getting at in post #6. It doesn't make sense as it stands.

Really, like you see in the Excel Docs.. I want the guy who as a salary of 100k and sells $6m to have a total payout of: $113,350
And I want the guy who earns a salary of 50k and sells $6m to have a total payout of: $113,350
And the guy who does not take a salary.. or the guy who take 200k.. and sells $6m.. I want them both to get $113,350

That means their salary is just a draw against their commission, no?

But if their base salary gets docked if they don't sell enough then it's not a salary - it's all commission. What's the advantages/disadvantages of taking a higher or lower salary?

But if their base salary gets docked if they don't sell enough then it's not a salary - it's all commission. What's the advantages/disadvantages of taking a higher or lower salary?

It's not uncommon: http://www.businessinsider.com/death...plained-2011-4

I'm hit by a paywall so cannot read the article, but I have no reason to doubt you. I'm bowing out of this thread since I do not think my little knowledge of salespeoples salaries or commission etc. is enough to help. Sorry!