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Mixed Commission Rates in an Rep Statement
If your company uses a marginal payout, calculating commission rates in Salesforce Spiff can be complicated and result in mixed rates from different tiers.
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| Available in: both Salesforce Classic (not available in all orgs) and Lightning Experience |
| Available in: Enterprise, Unlimited, and Developer Editions |
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Consider a range table where a rep's rate is based on quota attainment.
| Tier | Lower Bound | Upper Bound | Return Value |
|---|---|---|---|
| 1 | 0% attainment | 60% attainment | allocation × 10% |
| 2 | 60^ attainment | 100% attainment | allocation × 15% |
| 3 | 100% or more attainment | allocation × 18.75% |
However, the rep's statement shows a commission rate of 11.87%, which doesn't match the 10%, 15%, or 18.75% rates listed in the range table.
Here's how Spiff calculated that commission rate.
- The rep has a yearly quota of $447,920.
- For the rep to reach the Tier 2 commission rate of 15%, they must achieve 60% of the yearly quota, or $268,752. To reach the Tier 3 rate of 18.75%, they must achieve 100% of the yearly quota.
- The rep has already reached $174,609.91 for the year, which is short of the 60% target for Tier 2 by $94,142.09. So, the $174,609.91 total is Tier 1, at 10%.
- The new deal is worth $150,480, for a yearly total of $325,089.91. This total exceeds the 60% of yearly quota for Tier 2, but not all of this amount qualifies for the Tier 2 rate.
- Of the $150,480 new deal amount, the remaining $94,142.09 needed to reach the next tier receives the 10% rate for Tier 1. The excess amount, $56,337.91, qualifies for Tier 2 and receives the 15% rate.
- For this deal, the total commission amount is the product of these calculations.
- $94,142.09 × 10% = $9,414.21
- $56,337.91 × 15% = $8,450.69
- $9,414.21 + $8,450.69 = $17,864.90
- The $94,142.09 amount that qualified for Tier 1 represents 62.56% of the $150,480 deal amount. The $56,337.91 amount that qualified for Tier 2 represents 37.43% of the $150,480 deal amount.
- To calculate the effective rate, multiply these percentages by their respective commission rates, and add them together.
- 62.56% × 10% commission rate = 6.256% effective rate
- 37.43% × 15% commission rate = 5.615% effective rate
- 6.256% + 5.615% = 11.87%
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