Commission Distribution Matrix
Overview: The 25% one-time setup fee commission is strategically structured to incentivize both salespeople and affiliates. When an affiliate is involved, the commission is split, with 10% allocated to the salesperson and 15% to the affiliate. The full 25% commission is allocated directly to the salesperson if no affiliate is involved. This ensures equitable compensation across various scenarios.
Proposed Pricing Scheme with Commission Splits
| Farm Size | Setup Fee | Total 25% Commission | Salesperson Share (10%) | Affiliate Share (15%) | Direct Salesperson Commission (25%) |
|---|---|---|---|---|---|
| Micro Operations | $100 | $25 | $10.00 | $15.00 | $25.00 |
| Small Operations | $312.50 | $78.13 | $31.25 | $46.88 | $78.13 |
| Medium Operations | $937.50 | $234.38 | $93.75 | $140.63 | $234.38 |
| Large Operations | $3,125 | $781.25 | $312.50 | $468.75 | $781.25 |
| X-Large Operations | $9,375 | $2,343.75 | $937.50 | $1,406.25 | $2,343.75 |
Key Details:
- Commission Percentage: A fixed 25% one-time setup fee is allocated as a commission.
- Split Commission: When a salesperson and an affiliate are involved, the commission is divided, with 10% going to the salesperson and 15% to the affiliate.
- Direct Commission: If no affiliate is involved, the full 25% commission is allocated to the salesperson.
Implementation:
This commission distribution matrix clearly and structuredly allocates the 25% commission from the one-time setup fee across different farm sizes. Whether the sale involves a salesperson and an affiliate or is conducted directly by a salesperson alone, the commission structure is designed to motivate and fairly reward all contributors, ensuring alignment with your business objectives.