Company Sales Commission Splits tab

This tab set the options for how you want to allocate the Listing & Selling side if the sale and the Agents share.



TABLE OF CONTENTS


There are two parts to a commission spilt 

  1. what the list sell split is 
  2. and what share of this agents get 


List & Sell split

The first step is to decide how much of the commission that you want to allocate to the listing side and the selling side of the sale. You must allocate 100% of the commission.

It is common in our industry to alter this split as the market changes.


Agents Share

There are two ways to calculate your Agents share of the sale commission. 


Flat Rate Commission 

Most companies have at least one sale split. When a Sale is processed then this Agent split rate will be applied to the Sale.

Tiered Commission rate

The tiered agent commission rate option is much more complex but allows you to pay your agents at a different rate depending on their level of income received to date. We call it Commission tiers.

  1. Tier Calculation
  2. Calculate Agent amounts using:
  3. Sales included in their calculation:
  4. Reset tiers: Annually
  5. Recalculate Agent share when sale is made: Unconditional?


Tier Calculation

Calculating an Agents position when using commission tiers.

There is no right or wrong way when it comes to setting your company tiers, these are the options available in the OSL Office program.

How to measure sales

What part of the sale to use when calculating the current tier? What this means is you need to choose how you want to count sales.

  • Volume of Sales (e.g. if an Agent is both the listing and selling agent the total volume of the sale = 1)
  • Sale price – this option will calculate the value of activity using the sale Sale price.
  • Commission brought into the Office – Uses the share of the Sale gross commission into office for the agent
  • Amount paid to the Agent – Uses the amount that the agent is paid on a sale

Example Sale

A sale price of $2,500,00 with 2 agents, and total commission of $25,000 and the Agent received 50% of the commission.

If you use Volume of Sales then both agents would would get be credited .5 ie half a sale each

If you use Sale Price then both agents would get be credited $1,250,000 each

If you use Commission into office then both agents would get be credited $6,250 each

If you use what the agents are paid then then both agents would get be credited $3,125 each

Sale status

What Sale status to use to included in the calculation?

When the Agents tier position is calculated you can set which sales to include in the calculation. Sales to include can be either

  • Released
  • or Unconditional

If you select the Unconditional option this will have the effect of including more sales in the tier position calculation.


A Sale does not actually have to be paid out but the sale needs to be marked as Released (i.e. Able to be paid to the Agent) to be included in the calculation.

Date range 

What Date range to use?

Your sale commission tiers can be re set at either Monthly, Quarterly or Bi-Annual or annually. The shorter the re set tier option will mean that you will have probably entered lower steps between tiers.

Different anniversary dates may provide more or less incentives for your sales people.


  • Anniversary Date range for a tier

The Anniversary date option allows Agents to be on different tiers depending on their individual Anniversary date.

This has the effect of levelling out your company cash flow requirements as Agents are not all on the same tiers at the same time.


Once you have entered the Anniversary date you do not need to change it, the program will always calculate the correct value from the original date. Even years into the future.


Example 1 Anniversary date 1: If an Agent has a per annum anniversary date of 01/01/2020, and set to use Commission into office. A sale is entered on the 01/10/2020 the % paid to the agent will be calculated using the Agents share of the commission into Office for every Sale that they are included in that has been Released since the 01/01/2015


Example 2 Anniversary date 2: As above but the Sale was entered 01/03/2016.(i.e. 14 months after the anniversary date) Because the Agents Anniversary Date is 01/01/2016 the calculation will only include Sales from the 01/01/2016 through to the 01/03/2016 (i.e. 3 months)


Recalculate the agents tier when a Sale is made Unconditional or Released.

You may require this option as the position on a tier may have changed after a Sale is loaded and before the sale is paid out.

This may be an option for your office as the time between when a Sale is first entered in OSL Office and when it is Released may result in the Agent being on a different tier when the Sale is actually Released.

Select this option if you want to recalculate an Agents split when the sale is Released.


If you are using this option when the sale is made Unconditional then any manually entered agent % will be recalculated, but a manually entered amounts 0.00 will NOT be recalculated.


Calculating the commission on a Sale passing through a tier

A unique feature of the OSL Office system is that when a sale takes an Agent through one tier the first portion of the Sale is calculated at the current tier rate and the balance will be calculated at the new tier rate.


How to check the position of an Agent on a tier

Open the Staff profile and check on the details tab

Or print the Sales activity report

Open the Staff profile and select the Activity button (make sure that you select the details option and enter the correct date range)


Make sure you select the correct date range, that is the same date range that the Agents anniversary date is or Financial year.

Then look in the appropriate section and column for the total amount.


If you have made it this far ..you might want to contact the help desk to help you set up your company agent commission splits


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