Design a Sales Commission program that rewards performance
This template is designed to help you determine how to pay your sales personnel through commission targets and goals. This specific template will look at Quota Attainment to help calculate actual payouts.
1st – Understand how to set your commission percentages and goals for you sales staff
2nd – Easily calculate your commission payouts, with pre-set formulas so you just fill out your data ,
Easily determine commission targets and goals
This method looks at the Total Target Compensation and Pay Mix between base pay and incentive pay to come up with the incentive targets (PDF directions included). The template guides you in determining the Sales Volume targets, thresholds and exceptional performance levels, and how to translate that into a base pay and commission structure.
After filling out the information in green cells, the template will summarize the earnings potential and recommended commission targets:
Model or Calculate the Commission Payouts
After everything has been set in the Determine Commission pages, you are all set to record the actual sales volumes that will calculate commission payouts. For each employee, you can model or calculate up to 12 different sales volume results. So this can be used monthly, with a new row for each month, or quarterly, etc.
The details page can also be used to model what the payout would be at different sales volumes, as shown in example above.
The spreadsheet works with up to 20 employees and there are 2 pages per salesperson:
Page 1 – Determine Commission – to set the targets and goals
Page 2 – Employee Details – to calculate the commission
Plus a summary page that will pull everything together: