Understanding your calculation
Method, example and limitations
How the calculation works
A flat commission multiplies eligible sales by the commission rate. Tiered arrangements calculate portions at different rates or apply a threshold, depending on the contract.
Example to check
At a flat 5% commission, eligible sales of 2,000 produce 100 before withholding or other deductions.
Before using the result
Confirm whether returns, tax, shipping and discounts reduce eligible sales. A tiered plan should not be treated as a flat rate unless the agreement says so.