Monday, 15 August 2022
You are here:  EmployersSales Commission PlansTypes of Variable Payment Plans
 
  Minimize
Bookmark and Share
Types of Variable Payment Plans Minimize

SALES RECRUITMENT, SALES RECRUITERS & SALES RECRUITMENT AGENCY

How Does A Commission Plan Differ From Other Variable Payment Plans?

There are three types of variable payment plans commonly used to incentivise salespeople in Australia as defined below:

Bonus / Profit Share

A bonus plan or profit share program is a compensation system in which employees are awarded a share of the company's profits to encourage increased productivity.

Incentive Plan

An incentive plan is a planned activity designed to motivate an individual to achieve predetermined organizational objectives or KPIs. The payment may be in the form of a bonus, commission or other non-monetary awards such as merchandise and travel.

Commission Plan

A commission plan is a type of variable payment plan where the salesperson knows their sales target and how much they will be paid if they reach their sales target. This payment is generally based on a percentage of gross revenue or gross profit.

 Type of Plan

Metric

Value to Salesperson

Example 

Bonus / Profit Share

Based on the company or business unit's overall performance

Low - Known only after the performance period has ended

Staff member is eligible for profit share, which is 5% of profit divided among 50 staff

Profit is $1,000,000 Value to each employee is $1,000.00

Profit is $10,000,000 Value to each employee is $10,000.00

Incentive plan

Based on an individual and / or team performance against predetermined objectives or KPI's

High - Known from the start of the performance period

Target variable pay is paid on achieving 100% against objectives or KPIs

Employee achieves 100% of objectives Value to employee is $10,000

Employee achieves 75% of objectives Value to employee is $7,500

Commission plan 

Based on a percentage of gross revenue or gross profit

High - Known from the start of the performance period 

3.0% of gross sales to target and 5.0% of all sales above target

Employee achieves sales of $1,000,000, commission is $30,000

Employee achieves sales of $1,200,000, commission is $40,000 

 

Privacy Statement | Terms & Conditions
 
Nike Pas Cher Nike Tn Pas Cher Nike Tn Pas Cher Nike Tn Requin Pas Cher UGG Pas Cher Nike Tn Requin Pas Cher http://www.novaxel.com/chaussuresnike.html http://www.diginext.fr/positions/nikepascher.html http://www.nrbc-sudest.org/public/niketnpascher.html http://www.histoire-compiegne.com/requinniketn.html http://boutique.girondins.com/uggpascher.html http://www.territoires-haute-normandie.net/tnpascher.html Nike Pas Cher Nike Pas Cher Nike Tn Pas Cher Nike Tn Pas Cher Nike Tn Pas Cher Nike Tn Pas Cher Nike Blazer Pas Cher