Commission Split

Why Commission Split is Important

Commission splits ensure fair compensation when more than one salesperson contributes to a sale. It motivates teamwork and clarifies earnings, preventing disputes.

How Commission Split is Used

When a sale involves multiple sales reps, the total commission is split according to a prearranged agreement. This split can be equal or based on each person's contribution.

Examples of Commission Split

If two salespeople close a deal with a $1,000 commission and agree to a 60/40 split, one earns $600 and the other $400.

Frequently Asked Questions

• What determines the commission split? It is usually decided by company policy or mutual agreement between salespeople.
• Can commission splits vary by deal? Yes, splits can change depending on the deal complexity or contribution levels.
• Is commission split the same as commission rate? No, the commission rate is the percentage of the sale paid as commission, while the split divides that commission among parties.