This sliding scale base can be used for Agent's split, pre- and post-split deductions.
Applying this type of base to the agent's split allows pro-rating the earnings mid-transaction. This means the agent will move to the next CAP mid-transaction. It is important to set up the commission plan's split percentage according to the Remaining Balance.
Historical contribution: $13 000
The remaining balance (current transaction commission basis): $62 000
The tiers for the current transaction plan are as follows:
Explanation: prior to this transaction, the agent has paid $13 000 to the company year to date. The commission basis for the current transaction is $62 000. Therefore he will move to the $15 000 tier by paying $2 000 to the company getting the 80% split of the $10 000. After this agent will have $52 000 of the remaining balance. In order to reach the next tier the $5 000 needs to be paid to the company. The agent's split is now 90% which is equal to $45 000. The agent has now reached his final CAP with the remaining balance of $2000 which is added to his net amount for the current transaction. This agent will now get a 100% commission split for all further transactions of the year that are associated with this commission plan.
|80%||$8 000||$2 000||$52 000|
|90%||$45 000||$5 000||$2 000|
If using Split: company's portion for the pre- and post-split deductions the amounts do not prorate mid-transaction. The pre-split calculations are based on the amount accrued prior to the current transaction. The post-split deduction will take into account the amount earned in the current transaction and calculate accordingly.