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Commission Allocation in sales refers to the process of distributing sales commissions among sales team members or departments based on their contribution to a sale or sales target.
Synonyms: commission distribution, commission split, sales commission allocation, commission sharing
Commission allocation ensures fair compensation for sales efforts, motivates sales teams, and helps maintain transparency in how commissions are earned and shared.
Sales organizations use commission allocation to divide commissions among multiple salespeople who contributed to a sale, such as account managers, sales reps, and support staff. It can be based on predefined percentages or performance metrics.
If two salespeople collaborate on closing a deal, the commission might be split 60/40 based on their roles. Another example is allocating commissions between a sales rep and a sales manager who supported the sale.
