Common commission plans
- Flat percentage — the same rate on all sales. Simple, but gives no extra push to sell more.
- Slabs — the rate rises as sales grow, for example 2% up to ৳3 lakh, 3% to ৳5 lakh and 4% above.
- Target bonus — a small base rate plus a fixed bonus when the monthly target is reached, and extra on sales above the target.
Progressive vs whole-sales slabs
With progressive slabs each part of the sales is paid at its own slab's rate — like income tax. With whole-sales slabs, once a salesperson crosses a slab the higher rate applies to all their sales. Whole-sales slabs motivate strongly but create big jumps right at the slab line.
Example: ৳6,10,000 sales on slabs 2% / 3% above ৳3 lakh / 4% above ৳5 lakh. Progressive: ৳6,000 + ৳6,000 + ৳4,400 = ৳16,400. Whole-sales: 4% × ৳6,10,000 = ৳24,400.
Tips
- Pay commission on collected sales, not just invoiced, if credit sales are common.
- Keep the plan simple enough that each salesperson can work out their own commission.
- Review targets every quarter so they stay reachable.
A POS records sales per salesperson automatically, so the commission sheet is ready at month end.
Eleven POS
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