SALES RECRUITMENT, SALES RECRUITERS & SALES RECRUITMENT AGENCY
Calculation of Incentive Entitlements
Incentives are calculated quarterly using the following formula:
{YTD gross profits paid invoices – YTD base target } X Com. % = Incentive Entitlement
Gross profits are maintained by the Business Development Manager and submitted each month to Finance.
- Base target is as per item # 1 in the Table 1.0
- Commission % (Com. %) is as per Table 2.0
- Any bad-debts or credit notes issued will have relevant commission deducted from the commission payment
- The base target and commission bands are calculated on a quarter to date basis and are treated cumulatively for the quarter
- The base target and commissions are based on the paid date for invoices in any given quarter
- For Professional Services sold, the % margin for profitability is based on item # 2 in the Table 1.0
- For Hardware & Software items sold, the % margin for profitability is based on item # 3 in the Table 1.0
Table 1.0
|
Item
|
Description
|
|
# 1
|
Base Target $50,000 gross profit annually ($12,500 quarterly)
|
|
# 2
|
Professional Services = 35 % Margin
|
|
# 3
|
Hardware & Software = Actual Margin
|
Table 2.0
|
Incentive Scheme
|
Lower
|
Upper
|
Commission Level
|
|
Band A
|
$0
|
$50,000
|
0%
|
|
Band B
|
$50,001
|
$100,000
|
10%
|
|
Band C
|
$100,001
|
$250,000
|
20%
|
|
Band D
|
$250,001
|
$400,000
|
25%
|
|
Band E
|
$400,001
|
Unlimited
|
25%
|
Note: Scale as per total Annual Gross Profit payable quarterly