Once you've allocated the Agent award percentages, Rex will update the 'Agent Commission Breakdown section.
This section is used to help you determine each Agents' net commission payable amount. Individual Agents will each have a separate section where you can set their earned commission and add any Agent Deductions.
The 'maximum payable commission' is a quick guideline representing the maximum amount you should pay the Agent based on their responsibility for the sale (determined in Step 3). In theory, paying the Agent more than this amount means you're effectively making a loss on the sale as an office.
For example, let's say two Agents are involved in a sale generating $10,000 in distributable commission, and one of the Agents was responsible for 60% of the sale (equivalent to $6,000). If you choose to pay the Agent $7,000 in commission when they only brought in $6,000 (the maximum payable commission amount), you're making a loss of $1,000.
Percentage vs Dollar Amounts
Agencies have extremely varied agreements with their Agents in regards to how earned commission on a sale is calculated. To accomodate for these varying scenarios, when entering an Agent's earned commission, Rex allows you to do so by inserting either a percentage or dollar figure. Let's go into a little further detail.
- Some Agencies simply pay Agents a fixed percentage on each dollar they bring in to the office. If this sounds like you, select the percentage '%' entry.
Following on from the above example, if an Agent brought in $6,000, and we had an agreement to pay them 20c on every dollar they brought into the office, we would simply enter '20%' and the system would calculate their earnings.
- Alternatively, some Agencies pay Agents a fixed fee per sale: e.g. $1,000. In this situation, you should select the fixed '$' entry, before entering your fixed fee into the appropriate field.
- Finally, some Agencies have quite complex tiers and calculations based on the amount of money Agents bring in in terms of released funds over a month, quarter, etc. In these situations, use the fixed dollar entry.
Entering the Agent's gross payable amount:
- To set the gross amount the Agent will receive, use '$' or '%' at the right of the ‘amount to agent’ field to select a 'fixed amount' or a 'percentage' respectively.
- Enter the value into the 'amount to agent' field.
- Click 'Save Changes'.
To add Agent Deductions:
From here, you'll be able to apply any deductions to the Agent's earnings that relate specifically to the sale at hand. (This might include gifts, advertising overspend, etc).
- The steps are identical to those described above in other sections for managing deductions.
- To add more lines, click 'Add another deduction'
Using the Commission Settings section of Rex, you can also set up default Agent Deductions that pre-populate whenever an Agent is added to a Commission Worksheet. If any of these pre-set deductions are present, they'll automatically calculate the deduction amount based on how they were set up.
You can adjust the fixed amount '$' or percentage '%' of these deductions for individual Commission Worksheets as necessary.