Introduction

This article describes the Commissions module. You will get to know how it works and when to use it. This article contains as well some usage examples, which may prove useful for you. 

Module Description

The Commissions module allows for automatic calculation of commission reports based on data in the PGM system. It can be used for very complex scenarios.

What can I grant commissions for?

Commissions can be granted for:

• selling a contract
• selling a product
• performing a personal training
• performing a group class

How often the commissions are calculated?

Commissions are calculated according to a configurable schedule. So, it is up to your needs.

Example: commissions can be calculated monthly, on every 10th day of the month, bi-weekly, or on Friday. You can also have multiple schedules, for example, you can grant basic commissions monthly, and additional yearly bonus. Or, you can grant PT commissions monthly, but contract sale commissions every 2 months.

How are the commissions calculated?

For every commissions' schedule you can set up multiple commission rules.

They will state:

• what is commissioned (like contracts or PT),
• how do we want to measure employee performance (i.e. the number of contracts sold or lifetime value of contracts),
• what are the criteria (i.e. a club, or a specific payment plan for the contract),
• how much money will be granted (i.e. 20% of PT value or 10$ per PT performed),
• what thresholds must be met to grant the commission (i.e. min. 10 PT per month to get a higher percentage).

Example: you can have a rule for personal training sessions and two rules for contract sales.

Commissions are mostly calculated independently for every single rule. Resulting commission is a sum of commissions from all of the rules.

Also, it's possible to set up some more complex scenarios:

• granting commission from product & contract sales combined,
• making the rules depending on each other (granting additional PT commission if 3 group classes are done).

Look at the examples below to illustrate it.

How the commission report looks like?

For every commission period, there will be a report generated automatically.

Reports are also generated for periods, that are not closed yet.  For example, commissions are calculated at the end of the month, but now in the middle of the month. This allows you to see how your team is performing on a daily basis. 

You can download a report summary as an Excel file, or you can view a detailed interactive report.

A detailed report can show you how commission was calculated down to every single detail. For example, you can see which exact training sessions were included in a particular trainer's commission.

What if I want to change configuration?

Reports generated for previous (closed) periods will not change. Modifying the configuration will only affect current and future commissions.

So you can easily change the configuration in the middle of the month.

Exception for that is, when you decide to delete old reports. If you do so, reports will be recalculated based on a new configuration.

Real-life examples

Here are some real-life examples to illustrate the capabilities of the module and how it works under the hood.

Example 1 - simple commission for performing PT

• You have a monthly commission for performing personal training sessions
• Commission is calculated at the end of the month
• You have one rule for all training sessions in all clubs
• You give a flat 20% rate for all training sessions performed

Example 2 - advanced commission for performing PT

• You have a monthly commission for performing personal training sessions
• Commission is calculated at the end of the month
• You have one rule for all training sessions in all clubs
• You require the training to be marked as done to get the commission
• You need to make at least 3 training sessions a month to get any commission
• After that you grant 20% of the training value to the employee for every training
• If 10 or more training sessions are done, you give 30% for every training (including the first 10)
• For every training above 15 you give 50% (but first 14 training sessions get only 30%) 
• Some of your premium trainers have even better commissions

Example 3 - commission for selling contracts

• You have a monthly commission for selling contracts
• Commission is calculated on 10th of every month
• You have basic and premium plans and want to give different commissions for each of them
• You set up 2 rules, one per each payment plan
• Selling a basic plan gives 20$ commission, but selling premium plan gives 50$
• If an employee sells contracts for 1000$ of both combined, you give them an additional 100$ bonus. So you need a third rule, that includes both payment plans and fixed commission value once a 1000$ threshold is met.

Example 4 - different commissions in every club

• You have a bi-monthly commission for group classes.
• Commission is calculated on the 10th of every two months.
• In one club you want to give 10$ per class performed, but in the second one 12$ per class.
• You set up 2 rules, one per each club.

Example 5 - combined product & contract sale

• If an employee sells contracts & products worth 3000$ combined in a month, they will get 5% of that.
• You will have 3 rules, one for products, one for contracts and one that is an aggregate of the two.
• Product & contract rule will not give any commission by itself.
• The third rule will calculate commission value summing results from the 2 other rules and taking 5% of that.