Manager Override Commission

As the name suggests, override commission is the percentage of commission a manger receives when employees in their team or beneath them make a sale. For example, if a team has three members and each make 10% commission, a manager may make 1% of override commission from their sales.

Manager overrides are easily handled within Commissionly. They can be set up as part of any commission plan in just a few simple steps.

The sales manager of any sales team is directly responsible for the motivation, management and performance of the sales staff reporting to him, and usually receives a small percentage of “overriding” commission based on the sales they achieve. For example, if a sales manager has five sales reps reporting to him who each earn 10% of the value of their sales on reaching the target, he may earn a 2% overriding commission on the sales each agent makes.

How can manager override commission improve sales?

You may be wondering how improving just one employee’s commission can improve the sales of an entire team. Below we list some of the ways manager override commission can improve sales.

Hands-on motivation

If a manager knows they are going to receive their own commission from their team’s sales, they will be much more likely to take a hands-on approach to motivate their team and ensure their team is working as productively as possible.

Build stronger relationships

Many salespeople, if made aware that by making sales they will not only benefit themselves but their manager, they will feel more motivated to work harder and please their manager. Team members seek to please their manager for a number of reasons, such as because they have a close friendship or because they hope to be promoted within the team.

Greater teamwork

If sales commission is split fairly between team members and their manager, this can be done accurately with commission calculation software, it will create a stronger sense of teamwork between a sales team and their manager, as they will all be working towards the same goals.

Still using Excel to calculate your commissions?

If you’re currently using a spreadsheet to calculate commissions, and you’d like a simpler, more efficient way to manage sales performance, why not consider Commissionly?

You can even benefit from a free trial with a demonstration on how to improve your sales performance management. With a host of other powerful features, like sales territory management, sales quota management and sales objective management, you’ll soon find yourself wondering how you ever managed with a simple spreadsheet.

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