Free Sales Commission Calculator
Calculate Revenue Commission, Placement Fees, Tiered Commission & SaaS Sales Commission for your sales team.
Revenue Commission
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Placement Fees
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Tiered Commission
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Monthly recurring revenue per 1 sales rep
SaaS Sales Commission
Salespeople are compensated based on a predetermined percentage of all sales they generate. Example: If you generate $30,000 in sales while working with a business that pays a commission of 5% of revenue, your commission will be $1,500.
When a salesperson uses this form of compensation structure, he or she earns a fixed amount of commission for every sale made. Example: If you get paid $100 for each sale that you close, the first $100 is considered a placement fee, and the rest is called a commission. As a result, if you close 15 sales in a month, you will get $1,500.
The tiered commission model is designed to maximise your earnings per sale as you sell more. Additionally, it gives extra incentives for sales representatives to promote new items, update current products, and maintain touch with potential repeat customers. For example, for sales of up to $10,000, the sales personnel receives an 8% commission. Sales employees earn a 12% commission on sales between $15,001 and $25,000. They get 14% on sales between $25,001 and $50,000, and so on.
The primary difference between SaaS sales compensation and software (or other product) sales compensation is that you should pay based on the lifetime value of the contract rather than the unit price of the product. The lifetime value of a product is always proportional to its recurring income. As a result, it is simpler to utilise MRR or ARR as the primary measure in calculating commission from the start.
