What are commission plans?

For customers who have their own dealer, reseller or partner network, commission plans enable them to set up a uniform way of paying out a profit sharing or commission structure based on the business that's been referred.

A typical example is having an individual or organisation who has contacts that require business services, but that individual or organisation does not want or is not capable of dealing with that contact directly, so they refer it onto your organisation. You provide the services directly to the contact and bill them for it, but agree a fee structure with the individual or organisation where for every product or service billed to the contact, the individual or organisation will get a referral or finders fee.

This fee can be in the shape a percentage "cut", where the individual or organisation receives a fixed percentage figure based on the sell price (commission) or on the profit made (profit sharing). A commission plan will let you generate reports to hand over to the invividual or organisation who in turn can invoice your organisation to receive the commission fee.