Step 2 of a plan, Rate, has three choices. This page covers the first two.
One rate
The same percentage on everything the person brings in, target or not. With 2.5% and ₹4,00,000 collected, the commission is ₹10,000. It is the simplest plan to explain, and suits a team where the target is a goal rather than a line that changes pay.
Steps against the target
Rates that rise as a person passes their target. Each step is a share of the month’s target, and each rate applies only to the part inside its step, the way income tax slabs work. Earning into a higher step never lowers what was earned below it.
| Of their monthly target | Rate |
|---|---|
| Up to 100% | 2% |
| 100% to 120% | 3% |
| Above 120% | 4% |
With a ₹12,00,000 target and ₹15,00,000 collected:
- 2% of the first ₹12,00,000 is ₹24,000.
- 3% of the next ₹2,40,000, from 100% to 120% of the target, is ₹7,200.
- 4% of the last ₹60,000, above 120%, is ₹2,400.
- The commission is ₹33,600.
The plan page shows this example worked out with your own steps as you type them, so you can see what a rate means in rupees before saving.
A line that crosses a step
On a statement, lines are added up in date order. A payment that takes a person from 90% to 105% of their target is split: the part up to 100% earns 2%, the rest 3%. The statement shows its rate as “2% and 3%”. Lines after the target is passed say “3%, above target”.
Adding and removing steps
Add a step puts a new step 20 points above the last. The last step always has no upper limit. Each step must end higher than the one before; the plan will not save otherwise, and says which step to fix.
No target that month
A person with no target for the month is paid the first step’s rate on everything. Set targets before the month starts so that steps mean what you intend.
Choosing the steps
Two or three steps are enough for most teams. The first rate is what an ordinary month earns, so it should feel fair on its own. Keep the steps above the target close enough to reach: a step at 150% that nobody ever reaches motivates nobody. The rise between rates matters more than the rates themselves; one more percent above the target is a clear reason to push in the last week.
Something missing or wrong here? Tell us. A question that needed asking usually means a page that needed writing.