It could either be a straight commission scale (like 5% of all sales, for example), or it could be a sliding scale (say 3% of the first 10000, then 6% of the next 10000, etc).
It's often calculated on a monthly basis. So say it's 5% of all sales. If the gross sales attributed to the salesperson is 15000, then multiply 0.05 [equivalent of 5%] by $15000 to get $750 commission.
If it is the latter, then the 3% of the first 10000 is $300, then you have 6% of the next 5000 which is $300. Add those two together to get $600, total commission.
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Revised standard sales can be calculated by dividing the amount of sales over a given length of time. This is a more accurate way to calcuating sales rather than a projection.
Closing Ratio is the tracking of sales performance. It is calculated by the number of sales closed over the total number of sales presentations made in a given period of time.
Market expense to sales ratio is calculated by dividing selling and administrative expenses by total sales. ------------------------ Khairul Alam Institute of Business Administration University of Dhaka
There isn't a set figure for what Director's make a year. It all depends on how big their unit is & how much they're still selling. The bigger the unit, the less energy they put into personal sales, focusing more into training. Add in the free car compensation, partial car insurance payment, tax deductions, jewelry, prizes etc & the average Director earns more than just her sales & commissions. Top Directors earn lavish trips, BIGGER diamonds, more commissions, etc. Some are multimillionaires.
Decide in a rate of pay for each sale. ex: $4 per sale. Then multiply by sales per hour calculated separately. A person works 20 fours and makes 100 sales ... that is 100 sales / 20 hrs = 5 sales per hour Pay would be $4 per sale x 5 sales per hour = $20 per hour Total pay --- $20 per hour x 20 hours = $400.