Tracking and Calculating Sales Commissions: Our Table Template

Category: Sales

Save time, enhance reliability, and transparency when calculating your sales team’s commissions with our ready-to-use table template.

One Table for All Your Needs

With this table, you have multiple options. You can use it as a tool for communicating commission information to your sales team and as a simulation tool where your salespeople can enter their figures to estimate their commissions. No more unpleasant surprises, thanks to increased transparency!

Each Salesperson Only Sees Their Information

Through line-by-line sharing, you fill a single table with information for all your salespeople, but they only have access to their respective lines. No need to split your Excel file to share it with your team. Save time and increase accuracy.

Save Time and Gain Clarity with Automatically Calculated Formulas

This table includes pre-built formulas to allow you to focus on collecting, analyzing, and visualizing your data. Everyone benefits: you save time, and your sales team’s commissions are calculated in real-time with complete transparency.

Why Implement a Commission Plan?

Commissions: What Are They?

Commission is a sum of money paid to salespeople when a sale is made. The most common basis for a commission is revenue, but it can also be based on the profit made from the products sold.

A commission is typically used to compensate sales teams and complements a fixed salary. It is a recruiting incentive, as an attractive commission plan can help companies attract experienced professionals.

That is not its primary purpose, however. Commission plans primarily serve to motivate a sales team, drive their actions, and incentivize sales.

How To Implement a Good Compensation Plan?

A good compensation plan is one that the sales team fully embraces. This is crucial for its successful operation.

To achieve this, the commission plan must:

Be clear: Even if it is complex (see the following section), the rules must be understood by all the salespeople.
Be realistic: The conditions for earning variable compensation must be achievable. Otherwise, it may have the opposite effect, demotivating the sales team and causing sales to stagnate.
Serve the sales strategy: It is not just about selling! The products or services sold must align with the sales actions determined by the leadership. The commission plan is a useful lever in this direction.

How to Calculate the Amount of a Commission?

Simplifying Commission Calculations and Monitoring

Simplicity is key in when calculating commissions. The simplest solution is to pay salespeople a fixed percentage of the generated revenue; this percentage does not change; it is a fixed-rate commission.

For example, Mr. If his last sale amounts to €‍10,000, Mr. X will receive €‍300.

However, the use of differentiated rates is quite common. This involves varying the commission amount based on:

The product sold: This allows focusing sales efforts on specific products, such as new or more challenging goods. In practice, the commission percentage may be higher for these products, either temporarily or permanently. It is also possible to exclude certain products from the commission plan.
Customer type: Often used when acquiring a new customer to incentivize opening new accounts.
Quantity: A decreasing rate helps control compensation costs and evens out sales. Salespeople may be more inclined to spread sales throughout the year rather than selling as much as possible in a limited time frame.
Discounts: The use of discounts is a sales tactic aimed at facilitating sales. The commission percentage may vary based on the discount offered by each salesperson.

Depending on the industry, the products sold, their specifics, and competition, commission structures can vary significantly from one company to another. Therefore, there is no one-size-fits-all approach, and finding the right commission plan can take time and require iteration.

The Benefits of Using a Commission Calculation-and-Tracking Table

Calculating commissions can be complex, especially with differentiated rates. Implementing a collaborative commission calculation and tracking table offers several advantages, as listed below—especially if it is collaborative and easy to use, like the one offered by RowShare!

Time Savings in Commission Calculations

Once the commission calculation table is established, salespeople can fill it directly, regularly, or when a sale is made. Information is not scattered across various communication channels (i.e., emails, Excel files, etc.), and there are no back-and-forths.

Moreover, commission rates are associated with sales, and commission amounts are automatically calculated.

Transparency

By providing a commission tracking table that is accessible to all sales-team members and their managers, you create a single reference point for everyone to check their progress, commissions to-date, and more. Information flows smoothly and transparently between the salespeople and their managers.

As mentioned earlier, salespeople can directly enter completed sales into the table. In addition to saving time, the sales team retains control and visibility over their variable compensation. This provides a tangible view of the impact of their sales efforts on their earnings, thereby maintaining motivation.

Information Sharing

The commission-tracking table can be easily shared within the organization and externally, such as with resellers. RowShare allows you to customize sharing. Specifically, you can decide on the view provided to salespeople—either a comprehensive view of all commissions for each team member or a more individualized view where each salesperson sees only their commissions—and managers have access to an overall view of the table.

Real-Time Monitoring of Commissions Amounts

This table is easy to update, allowing salespeople to regularly update it. The benefit is twofold: Managers have access to accurate, up-to-date information, and salespeople are more motivated as they see the regular impact of their sales efforts on their compensation.

Beyond tracking commission amounts, this table provides an opportunity to monitor overall sales-team performance and goal achievement.

How to Implement a Commission Tracking Table in Your Company?

Adaptable to Your Commission Plan

As mentioned earlier, commission plans are unique to each company. While the template we offer is ready-to-use, it can be easily adapted to your specific needs. We can assist you in creating the ideal table that aligns with your variable compensation policy by customizing the existing model with you. Feel free to reach out to us!

Ease-of-Use

RowShare is a user-friendly tool. It is easy to get started and quick to deploy within sales teams, which makes it easier for everyone to embrace the system.

Be organized and work better with Rowshare

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What do our users think?

Rowshare makes it easy for teams to collaborate to get the same information in a simple and seamless way. It also provides easy access to stored data! At Rowshare, customer service is also quick and responsive, despite being in New York and Rowshare in France. Read the notice

Carter Dwight, RTR

Overall, this is the best online collaborative spreadsheet software to date. It is easy to use and has all the important features. Read the notice

Muhammed Anshad K., MIA Arabia

The tool is very user-friendly and can be customized according to the needs which are the most desirable features. Thus, we can perform our daily tasks more easily and efficiently and save valuable time. I also appreciated the customer support they offer. Read the notice

Sabin Ghatani, Arts and Crafts