Commission Plan Templates

Updated 3 months ago by Kory Lamme

Knowing how to create and apply Commission Plans is an important part of payroll for a business. Therefore it's equally important to know how each SuperSalon commission plan template works, and how they can be configured and customized to any business owner's exacting need.

Though the simple definitions for each commission plan template exist in the knowledge base glossary, this topic will examine each one, and go over their configuration details so staff members are better informed as to their purpose.

Proprietary Templates

A few of the templates that appear as selectable choices in the drop-down menu for creating a new commission plan were designed specifically for an individual company. These generally should not be used by locations that are not set up to process them, and they are as follows:

  • FS Matrix
  • CRIC Points
  • NTA Commission
  • Production Fee
  • Hourly Options

Service Sales

A scaled commission plan that rewards eligible staff members with a payout based on the amount of service revenue they are able to generate within a given pay period. The scaling metrics can support up to 39 tiers of percentages, bonuses, or both. These tiers will populate each time a dollar value is placed in one of the "Service Sales" text fields.

Template Metrics

  • Service Sales: These text fields are where the scaling takes place by entering the dollar value of service sales for each tier.
  • Commission (Text Field): If the commission payout is to be based on a percentage of the dollar value in the text field to the left, the numeric value of the percentage is entered here.
  • Bonus (Text Field): If the commission payout will be a straight dollar value based on the amount in the "Service Sales" text field to the left, the dollar value will be placed here for each tier.
  • Based On: This drop-down determines whether the commission plan's equations will be based on:
    • Sales divided by Production Hours
    • Sales divided by Total Hours
    • Just the raw Sales Amount
  • Commission: This drop-down menu determines whether or not the commission plan will be based on cumulative tiered levels, or just the highest value by itself.
  • Commission Multiplier: This drop-down determines whether Production or Total hours are figured into the commission plan's equations.
  • Bonus: If a bonus dollar amount is to be applied to the commission plan, this drop-down determines whether it will be based on Production Hours or Total Hours.
  • Sales $ are: This drop-down determines whether "Sales" are defined as those being before discounts/refunds (Gross), or after discounts/refunds (Net).
  • Include in Highest Pay Calculation: This yes/no drop-down determines whether or not this will be part of the "Highest Pay Calculations" section of the Payroll report.

Service Count Bonus

This commission plan is based on revenue generated by selling services from a specific Service Category. This bonus will take the form of a dollar value that is entered into the "Bonus Rate" text field

Template Metrics

  • Affected Service Type: This drop-down is where the specific Service Category is selected for use with the template.
  • Bonus Rate: This text field is where the dollar value of the bonus rate is entered.
  • Redo Bonus Rate: If a numeric value is entered into this text field, it will represent the dollar amount that is deducted from the staff members compensation.
  • Bonus: This drop-down menu determines whether or not the hourly bonus will be based on "Production" or "Total" hours.

Product Sales

Another scaled commission plan that awards a payout based on the amount of retail product revenue they are able to generate within a given pay period. Much like the Service Sales commission template, the scaling metrics can support up to 39 tiers of percentages, bonuses, or both. These tiers will populate each time a dollar value is placed in one of the "Product Sales" text fields.

Template Metrics

  • Product Sales: These text fields are where the scaling takes place by entering the dollar value of product sales for each tier.
  • Commission (Text Field): If the commission payout is to be based on a percentage of the dollar value in the text field to the left, the numeric value of the percentage is entered here.
  • Bonus (Text Field): If the commission payout will be a straight dollar value based on the amount in the "Product Sales" text field to the left, the dollar value will be placed here for each tier.
  • Based On: This drop-down determines whether the commission plan's equations will be based on:
    • Sales divided by Production Hours
    • Sales divided by Total Hours
    • Just the raw Sales Amount
  • Commission: This drop-down menu determines whether or not the commission plan will be based on cumulative tiered levels, or just the highest value by itself.
  • Commission Multiplier: This drop-down determines whether Production or Total hours are figured into the commission plan's equations.
  • Bonus: If a bonus dollar amount is to be applied to the commission plan, this drop-down determines whether it will be based on Production Hours or Total Hours.
  • Sales $ are: This drop-down determines whether "Sales" are defined as those being before discounts/refunds (Gross), or after discounts/refunds (Net).
  • Include in Highest Pay Calculation: This yes/no drop-down determines whether or not this will be part of the "Highest Pay Calculations" section of the Payroll report.

% Retail to Service – Product Commission

This template takes the value of retail product revenue, and divides it by service sales revenue to provide eligible staff members with a commission percentage based on the values entered into the "% Retail to Service Sales" text fields. This commission plan presumes staff members will want to sell more retail products vs. services for best results.

Template Metrics

  • % Retail to Service Sales: These text fields are where the percentage values are entered to establish the ascending tiers of achievement. The dollar signs to the left of the text fields should be ignored, and these are to be percentage values.
  • Commission (Text Field): There will be a text field for each tier of achievement in the "% Retail to Service Sales" column where the percentage value is to be entered.
  • Commission: This drop-down determines whether or not commission will be determined by cumulative tiered levels, or just the highest level of achievement.
  • Sales $ are: This drop-down will determine whether the commission is determined by revenue prior to discounts/refunds (Gross), or after discounts/refunds (Net).
  • Include in Highest Pay Calculation: This yes/no drop-down menu determines whether or not this commission plan will be included in the payroll reporting metrics.

% Retail to Service – Service Commission

This template is almost identical to the previous one, but instead takes the value of service sales revenue, and divides it by retail product sales revenue to provide eligible staff members with a commission percentage based on the values entered into the "% Retail to Service Sales" text fields. This commission plan presumes staff members will want to sell more retail services vs. products for best results.

Template Metrics

  • % Retail to Service Sales: These text fields are where the percentage values are entered to establish the ascending tiers of achievement. The dollar signs to the left of the text fields should be ignored, and these are to be percentage values.
  • Commission (Text Field): There will be a text field for each tier of achievement in the "% Retail to Service Sales" column where the percentage value is to be entered.
  • Commission: This drop-down determines whether or not commission will be determined by cumulative tiered levels, or just the highest level of achievement.
  • Sales $ are: This drop-down will determine whether the commission is determined by revenue prior to discounts/refunds (Gross), or after discounts/refunds (Net).
  • Include in Highest Pay Calculation: This yes/no drop-down menu determines whether or not this commission plan will be included in the payroll reporting metrics.

% Retail to Total Sales – Product Commission

This template works much the same way as the previous two, with the difference being that the value of ALL sales (retail and service) are tabulated and added to the the employee's total Product Commission based on the values entered into the "% Retail to Total Sales" text fields.

Template Metrics

  • % Retail to Total Sales: These text fields are where the percentage values are entered to establish the ascending tiers of achievement. The dollar signs to the left of the text fields should be ignored, and these are to be percentage values.
  • Commission (Text Field): There will be a text field for each tier of achievement in the "% Retail to Total Sales" column where the percentage value is to be entered.
  • Sales $ are: This drop-down will determine whether the commission is determined by revenue prior to discounts/refunds (Gross), or after discounts/refunds (Net).
  • Include in Highest Pay Calculation: This yes/no drop-down menu determines whether or not this commission plan will be included in the payroll reporting metrics.

Service based on Product

One of the more popular and widely used templates, this one calculates Service commission based on Product sales. In simple terms, the higher a staff member's retail products sales numbers are, the more they receive in Service commission with commission plans drawn from this template.

This is useful for locations who wish to give their staff members an opportunity to earn either a base salary or commission based payout for the given pay-period, depending on which ever is greater.

Template Metrics

  • Product Sales: These text fields are where the scaling takes place by entering the dollar value of product sales for each tier.
  • Commission (Text Field): If the commission payout is to be based on a percentage of the dollar value in the text field to the left, the numeric value of the percentage is entered here.
  • Bonus (Text Field): If the commission payout will be a straight dollar value based on the amount in the "Product Sales" text field to the left, the dollar value will be placed here for each tier.
  • Based On: This drop-down determines whether the commission plan's equations will be based on:
    • Sales divided by Production Hours
    • Sales divided by Total Hours
    • Just the raw Sales Amount
  • Sales $ are: This drop-down determines whether "Sales" are defined as those being before discounts/refunds (Gross), or after discounts/refunds (Net).
  • Bonus: If a bonus dollar amount is to be applied to the commission plan, this drop-down determines whether it will be based on Production Hours or Total Hours.
  • Include in Highest Pay Calculation: This yes/no drop-down determines whether or not this will be part of the "Highest Pay Calculations" section of the Payroll report.

Product Brand Premium

Commission plans drawn from this template provide incentive for staff members to sell as much of a specific Product Brand as possible for the best commission payout. This in conjunction with marketing and discounts is useful for establishing a win-win revenue stream for both employees and the location. The template metrics are very much the same as those previous.

Template Metrics

  • Select a Brand: This drop-down menu is where the specific Product Brand is selected for use with the commission plan.
  • Sales: These text fields are where the scaling takes place by entering the dollar value of product sales for each tier.
  • Commission (Text Field): If the commission payout is to be based on a percentage of the dollar value in the text field to the left, the numeric value of the percentage is entered here.
  • Bonus (Text Field): If the commission payout will be a straight dollar value based on the amount in the "Sales" text field to the left, the dollar value will be placed here for each tier.
  • Sales Based On: This drop-down determines whether the commission plan's equations will be based on:
    • Sales divided by Production Hours
    • Sales divided by Total Hours
    • Just the raw Sales Amount
  • Commission: This drop-down menu determines whether or not the commission plan will be based on cumulative tiered levels, or just the highest value by itself.
  • Sales $ are: This drop-down determines whether "Sales" are defined as those being before discounts/refunds (Gross), or after discounts/refunds (Net).
  • Bonus: If a bonus dollar amount is to be applied to the commission plan, this drop-down determines whether it will be based on Production Hours or Total Hours.
  • Include in Highest Pay Calculation: This yes/no drop-down determines whether or not this will be part of the "Highest Pay Calculations" section of the Payroll report.

Payrate based on Production

Locations that would like to have their staff members paid based on a sliding scale of production will find commission plans based on this template very useful. It takes all revenue generated by the employee as the "Production Rate", and establishes the "Payrate" as an hourly dollar value.

Template Metrics

  • Production Rate: The individual tiers revenue numbers are established in these text fields as numeric values. They begin at zero, and can have up to 38 instances.
  • Payrate: The hourly rate earned by the staff member, based on the corresponding revenue values in the "Production Rate" column.
  • Sales $ are: This drop-down establishes whether the sales revenue will be based on the following:
    • Net Service
    • Gross Service
    • Net Product
    • Gross Product
    • Net Total
    • Gross Total
  • Production based on: This drop-down determines whether the commission plan's equations will be based on:
    • Sales divided by Production Hours
    • Sales divided by Total Hours
    • Just the raw Sales Amount
  • Include in Highest Pay Calculation: This yes/no drop-down menu determines whether or not this commission plan will be included in the payroll reporting metrics.

Tenure Bonus

This template allows for commission plans that reward staff members based on seniority, and time spent working at the location. Commission plans like these help to alleviate turnaround, and lower churn rates for incoming and outgoing staff. Commission plans from this template can be based on a percentage, a bonus amount, or both.

The employee's start date needs to be established in their Employee Profile in order for commission plans from this template to work.

Template Metrics

  • Months Worked: These text fields are where the tiered levels of total months worked are entered (ignore the $).
  • Commission (Text Field): If the commission payout is to be based on a percentage of the dollar value in the text field to the left, the numeric value of the percentage is entered here.
  • Bonus (Text Field): If the commission payout will be a straight dollar value based on the amount in the "Months Worked" text field to the left, the dollar value will be placed here for each tier.
  • Sales $ are: This drop-down menu determines whether the commission plan will factor "Sales" as a Net value, or use the Bonus amount.
  • Bonus: This drop-down will determine whether the Bonus amount will be based on Production hours or Total hours.
  • Applies to: This drop-down allows users to select whether this commission plan will be counted as Product Commission, Service Commission, or both.
  • Include in Highest Pay Calculation: This yes/no drop-down menu determines whether or not this commission plan will be included in the payroll reporting metrics.

Service Category Premium

Commission plans drawn from this template give staff members an incentive to sell as many Services under a particular Service Category as possible, for the best possible payout. It is structured much the same way as the Product Brand Premium template, and is configured just as easily.

Template Metrics

  • Select a Category: The individual Service Category is selected from this drop-down, and will be used with the commission plan.
  • Service Sales: These text fields are where the scaling takes place by entering the dollar value of service sales for each tier.
  • Commission (Text Field): If the commission payout is to be based on a percentage of the dollar value in the text field to the left, the numeric value of the percentage is entered here.
  • Bonus (Text Field): If the commission payout will be a straight dollar value based on the amount in the "Service Sales" text field to the left, the dollar value will be placed here for each tier.
  • Based On: This drop-down determines whether the commission plan's equations will be based on:
    • Sales divided by Production Hours
    • Sales divided by Total Hours
    • Just the raw Sales Amount
  • Commission: This drop-down menu determines whether or not the commission plan will be based on cumulative tiered levels, or just the highest value by itself.
  • Commission Multiplier: This drop-down determines whether Production or Total hours are figured into the commission plan's equations.
  • Bonus: As with the previous drop-down, this gives users the choice of setting this commission plan to include Production or Total hours in its payout equations.
  • Sales $ are: This drop-down determines whether "Sales" are defined as those being before discounts/refunds (Gross), or after discounts/refunds (Net).
  • Include in Highest Pay Calculation: This yes/no drop-down determines whether or not this will be part of the "Highest Pay Calculations" section of the Payroll report.

PPG Service Commission

This commission plan template calculates Service Commission based on retail product revenue generated per guest (PPG). To simplify, this takes all product revenue generated by a staff member, and divides it by the number of guests they have seen for that day to markets calculations.

Template Metrics

  • Product $ Per Guest: These text fields are where the scaling takes place by entering the Product Per Guest revenue for each tier.
  • Commission (Text Field): If the commission payout is to be based on a percentage of the dollar value in the text field to the left, the numeric value of the percentage is entered here.
  • Bonus (Text Field): If the commission payout will be a straight dollar value based on the amount in the "Product $ Per Guest" text field to the left, the dollar value will be placed here for each tier.
  • Sales $ are: This drop-down determines whether "Sales" are defined as those being before discounts/refunds (Gross), or after discounts/refunds (Net).
  • Bonus: As with the previous drop-down, this gives users the choice of setting this commission plan to include Production or Total hours in its payout equations.
  • Include in Highest Pay Calculation: This yes/no drop-down determines whether or not this will be part of the "Highest Pay Calculations" section of the Payroll report.

Additional Bonus

When established, Commission Plans from this template allow management to add additional bonuses to the employees timecard via the Timecard Edit screen. There are no metrics involved, and users need only establish a name and assign it to an employee for it to be able to work.


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