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  1. #1
    Full Member BrattyKitty's Avatar
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    Red face Performance incentives
    Can someone explain to me, how performance incentives work.

    Suppose merchant pays 5% for sales up to $1000.
    -and for total sales amount equal to or greater than $1000.01 USD increase commission by 15%.

    Does that mean you get 5% for the first 1000. and 15% for the rest
    or
    Do you get 5% for the entire amount with an increase of 10% on the sales over the initial 1000.?
    or
    Do you get 5% for the entire amount with an increase of 15% on the commission earned above the initial thousand in sales?

    If someone can explain it to me as if I was a brain-dead martian, I would really appreciate it and won't take offense if you need to dummy down while explaining it.
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  2. #2
    Advocate mellie's Avatar
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    For sales up to 1,000 you get straight 5% commission. (sales volume x .05= commission).

    If all your sales total over $1,000 you get 5% commission plus an additional 15% of the 5 % added

    For example I have a merchant that pays 5 % plus 50% more commission for sales over 1,000. My 2 sales in march totaled 1114.95 I got 55.75 in commission plus and additional 27.87 perf incentive.

    In your example I believe if you had 1,001. in sales you would get $50.05 commission plus 7.50 as perf. incentive (7.50 is 15% of 50.05)

    Performance incentives post about a month after they are earned.

  3. #3
    ABW Ambassador Paul_Ward's Avatar
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    Good news and bad news.

    Good news, when the % goes up, it goes up for all sales, so the new % is usually payable on the whole amount including the bit that got you to the incentive level.

    Bad news, the % increase is usually of the commish %, e.g. normally 5% then reach a 20% increase level, the new overall amount goes to 6% (20% of 5% is 1% + the original 5% = 6%).

    So as I understand it, with a 20% increase over base at $1000:

    $999 at 5% = $49.95
    $1000 at 6% = $60

  4. #4
    Full Member BrattyKitty's Avatar
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    That makes it a bit clearer

    Basically, the performance incentive is calculated on the commission amount earned above the basic thresh hold set by the merchant.

    By golly I think I get it now!

    I've been getting the p.i. on my cheques but haven't been able to figure out how the amount is derived....and my math would always be a few cents + or -

    Thanks for the help
    Never argue with an idiot.
    The person watching, may not be able to tell the difference!

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