Configure compensation plan components

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Components determine how the compensation is calculated based on configured sales metrics. Create the components, configure commission details,  add attributes, and configure commission tiers on those attributes.

Add a component

  1. On the compensation configuration page, click Add Component.

  2. From the dropdown, select Custom Component.

    Custom Component option highlighted from the Add Component dropdown.

  3. In the New Component window, complete the following fields:

    Field

    Description

    Name

    Type a name for the new component.

    Description

    Type a brief description for the new component.

    Override Commission Lock

    Toggle on if you want to prevent the commission period from automatically locking on that component.

  4. Click Save & Configure.

Configure commission details

Commission details determine the type and the crediting rule by which the compensation is calculated and the role eligible for compensation based on that commission event.

  1. In the Commission Details section, complete the following fields:

    Commission Details section.

    Field

    Description

    Type

    From the dropdown, select the type of commission you want to configure.

    Crediting Rule

    From the dropdown, select a crediting rule to calculate the commissions against.

    Quota

    From the dropdown, select a quota you want to include as criteria for the commissions.

    Eligible Roles

    Select one or more roles that are eligible for compensation based on the commissions event.

Add attributes to a component

Attributes on a component are the different commission tiers (quota targets) a payee may be eligible to hit if the commissions event is triggered and the criteria is met.

  1. Click Add Attribute.

  2. From the dropdown, select the commissions type you want to configure for compensation and complete the fields as indicated:

Basic commission is the fundamental form of sales incentive where the salesperson earns a predetermined percentage or set numeric value for each sale as a direct reward for their efforts. Basic commissions can be a single or multi-tiered incentive.

  1. In the Basic Commission window, complete the following fields to configure how commissions pay is calculated based on the attribute type:

    Field

    Description

    Name/Nickname

    Type a name or nickname for commissions attribute.

    Note

    The attribute name is what cumulative or manager overlay/override commission types will reference.

    Description

    Type a brief description of the attribute.

    Tier Type

    Select whether the commission values are calculated based on a set numeric value or a percentage.

    Tier Source

    Select the field from which the tier values are calculated.

    Commission Type

    Select whether the commission will be paid based on a set monetary amount or a percentage.

    Commission Source

    Select the field from which the commission values are calculated.

    Formula Reference

    Select a preconfigured formula to use for the commissions calculation.

    Criteria

    Add operators and conditions to set the criteria that defines how commissions is paid.

  2. Click Save & Exit.

Cumulative commission allows multiple commission types—such as tiered rates, flat product commissions, or revenue-based bonuses—to be applied simultaneously. Each commission type may operate independently, but all contribute cumulatively toward a shared quota or target.

Note

You must add one other commission attributes (Basic or SPIFF) before you can apply cumulative commissions.

  1. In the Cumulative Commission window, complete the following fields:

    Field

    Description

    Name/Nickname

    Type a name or nickname for attribute.

    Description

    Type a brief description of the attribute.

    Contributing Commissions

    Select one or more commission attributes that contribute to the cumulative commission.

    Note

    Available attributes are based on Basic and SPIFF commission types added to the component.

  2. Click Save & Exit.

A SPIFF is a short-term sales incentive used to encourage specific outcome, such as selling a particular product, clearing excess inventory, or driving activity during a set period. SPIFFs are typically offered as a fixed bonus or reward and are separate from standard commission plans.

  1. In the SPIFF window, complete the following fields to configure how commissions pay is calculated based on the attribute type:

    Field

    Description

    Name/Nickname

    Type a name or nickname for commissions attribute.

    Note

    The attribute name is what cumulative or manager overlay/override commission types will reference.

    Description

    Type a brief description of the attribute.

    Tier Type

    Select whether the commission values are calculated based on a set numeric value or a percentage.

    Tier Source

    Select the field from which the tier values are calculated.

    Commission Type

    Select whether the commission will be paid based on a set dollar amount or a percentage.

    Commission Source

    Select the field from which the commission values are calculated.

    Formula Reference

    Select a preconfigured formula to use for the commissions calculation.

    Criteria

    Add operators and conditions to set the criteria that defines how commissions is paid.

  2. Click Save & Exit.

A manager overlay—also known as an override—is a commission structure that rewards managers or team leaders based on the sales performance of their entire team or the individuals reporting to them. It allows managers or team leaders to earn a percentage of their team's sales, in addition to any individual compensation they receive.

Note

You must add one other commission attribute (Basic or SPIFF) before you can add overlay commissions.

  1. In the Manager Overlay/Override window, complete the following fields:

    Field

    Description

    Name/Nickname

    Type a name or nickname for attribute.

    Description

    Type a brief description of the attribute.

    Component & Attribute

    Select the attributes contributes to the overlay/override commission.

    Note

    Available attributes are based on Basic and SPIFF commission types added to the component.

    Payment Trigger

    Select whether the commission is achieved when the team or an individual achieves their target.

    Recipients

    Select one or more individuals who will receive the overlay/override commission based on the commission event.

  2. Click Save & Exit.

Configure commission tiers

Commission tiers determine the numeric value or percentage of commission earned based on the achieved quota target.

  1. In the selected attribute, configure tiers as needed:

    Note

    When you add a new attribute, each attribute type automatically populates with one tier that you can customize for that commission attribute. Cumulative commission does not calculate based on tiers, but based on the cumulative achievements from multiple attributes.

    Example of configuring commission tiers.

    Column/option

    Description

    Start

    Click in the cell and type the percent or numeric value of the minimum achievable metric for the tier.

    Note

    For subsequent tiers, the start must be equal than the end value of the previous tier. For example, if tier 1 has an end value of 100, the start value of the tier 2 must be 100.

    End

    Click in the cell and type the percent or numeric value of the maximum achievable metric for the tier.

    No upper limit

    Select if you do not want a maximum limit for the tier.

    Commission

    Click in the cell and type the percent or numeric value of the commission individuals will receive for achieving that tier.

    Applies to all tier

    Select if you want the commission amount to apply to previous achieved tiers.

  2. Click Add and configure the tier values on additional tiers, as needed.

Add formulas and variables

Formulas and variables provide add-on commissions calculated either before or after the commissions in the configured tiers.

Create a formula

  1. From the Formulas & Variables section, click Add.

  2. In the Name field, type a name for the formula.

  3. From the Calculation Placement dropdown, select an option:

    • Pre-Calculated—modifies the values before commissions are calculated.

    • Post-Calculated—applies to the commission amount after all commissions are calculated.

    Note

    Once you save the formula, you cannot change the name or the calculation placement.

  4. To build formulas, drag and drop different entities from the menu or type formulas directly in the formula builder window.

    Note

    The formula builder has a built in validation feature that indicates in real time whether the formula validates or has errors.

    Example of the adding formulas to the formula builder.

  5. Refer to the following table for a description of the different entities you can use to build formulas:

    Entity

    Description

    Comparison

    Compares variable values.

    Conditionals

    Decision-making structure that calculate based on which condition is met.

    Grouping

    Determines order of operations within the formula.

    Mathematics

    Standard arithmetic operators to calculate variables within the formula.

    Quantifiers

    Aggregates the variables within the formula.

    Variables

    Different fields that pull in data for the formula.