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Sales commission can be calculated base on either:
1) A percentage of the total Revenue.
2) A percentage of the Gross Profit.
3) A percentage of the Net Profit.
That percentage can be against the:
1) The overall achievement of all sales during a complete fiscal year; or
2) Achievement of specific items or business lines during a complete fiscal year.
3) Or achievement on all/partial sales for specific time (month, quarter, bi-yearly, or yearly)
4) Commission per item sold, or per service provided.
- Usually commission is 3 to 20 % of the GP. But this varies a lot depending on the industry you are in.
You have to answer 3 questions:
What is the sales price per unit?
What is your commission percent?
How many unit do you sell per week on average?
Then you do the math:
Commission per unit sales
Total sales per week
Total commissions per week
Total sales per year
(50 weeks per year)
Total commissions per year (50 weeks per year)
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