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Spiff
Spiff
Spiff is a new class of commission software that combines the familiarity and ease-of-use of a spreadsheet with the power of automation at scale- enabling finance and sales operations teams to self-manage complex incentive compens...Read more about Spiff
Everstage
Everstage
Everstage is the leading Sales Commission Software that helps you drive the right business outcomes through incentives. Sales commissions, despite being a large business expense, is often a revenue lever that is not utilized to i...Read more about Everstage
Xactly Incent
Xactly Incent
Xactly Incent is a software solution that allows companies to design, automate and manage incentive compensation—from the simple to the complex—and align seller behavior with revenue goals. With Xactly Incent, customers are able t...Read more about Xactly Incent
Tipalti
Tipalti
Tipalti is the world's leading finance automation solution for managing accounts payable, procurement, expenses, card, and global payments. Eliminating 80% of manual work and accelerating financial close by 25%. Tipalti allows yo...Read more about Tipalti
CaptivateIQ
CaptivateIQ
CaptivateIQ, an agile commission solution that empowers companies to run effective incentive compensation programs with confidence. Recognized for combining the flexibility and familiarity of spreadsheets with a powerful calculati...Read more about CaptivateIQ
SalesVista
SalesVista
SalesViista offers agile automation features that generate rules-based compensation calculations. Businesses can keep commission priorities in check with workflows and alerts for plan configurations and access centralized reportin...Read more about SalesVista
Jenkon
Jenkon
Software Innovation for Direct Selling & Sales Force Performance Jenkon develops game-changing web and mobile technology solutions for global direct sellers. Our J6 software suite is the most powerful business platform in the his...Read more about Jenkon
CommissionCalc
CommissionCalc
CommissionCalc is an on-premise solution designed to help small to medium businesses automate processes related to calculation of sales commissions. Key features include flat commissions, affiliate management, commission tracking,...Read more about CommissionCalc
incentX
incentX
Designed for small to large businesses, incentX is a cloud-based platform that helps streamline commission management. It caters to businesses that demand precision and control; the platform seamlessly aligns sales objectives, ef...Read more about incentX
Commission Tracker
Commission Tracker
Commission Tracker is an on-premise and cloud-based solution that enables insurance agencies to manage policies and calculate agents' commissions. Administrators can sort existing policies based on agents, carriers or clients and ...Read more about Commission Tracker
motiveOS
motiveOS
motiveOS is a cloud-based compensation planning, automation and management software that assists organizations with creating compensation plans for high-performance sales teams. The compensation application provides visibility int...Read more about motiveOS
NOBL
NOBL
NOBL is a cloud-based accounting and solvency solution that helps property and casualty (P&C) insurance brokers manage premium/return of premium funds as per government regulations. It utilizes automated billing and follow-up proc...Read more about NOBL
Core Commissions
Core Commissions
Core Commission is an on-premise and cloud-based solution that enables businesses to automate commission calculating processes using various tools. It comes with an extract, transform, load (ETL) module, which allows users to tran...Read more about Core Commissions
RPM Telco
RPM Telco
RPM Telco is a cloud-based solution designed to help telecom businesses streamline operations and automate calculation of commission. It allows organizations to track active deals and manage orders from submission to commissioning...Read more about RPM Telco
EvolveNXT
EvolveNXT
EvolveNXT is a cloud-based solution designed to help insurance businesses streamline processes related to lead management, commission distribution, agent onboarding, document creation and more. The EvolveDocs module allows manager...Read more about EvolveNXT
Varicent
Varicent
Varicent helps businesses accurately track, manage, and report on sales processes through the Sales Performance Management (SPM) solution. This solution helps businesses realize bottom-line efficiencies and top-line results throug...Read more about Varicent
CompensationXL
CompensationXL
CompensationXL is a cloud-based human resources (HR) solution. It allows users to create workbooks, which they can access online. The solution stores business rules and the data is fed automatically to human resources information ...Read more about CompensationXL
Sales Cookie
Sales Cookie
Sales Cookie is a cloud-based solution designed to help SMBs and large companies automate sales commission for their reps. It provides a modern user interface with an online dashboard that breaks down goal and payout information f...Read more about Sales Cookie
TalentComp
TalentComp
TalentComp is a standalone compensation management solution suitable for businesses of all sizes. It can be deployed as a cloud-based or on-premise solution. TalentComp tracks employee compensation and performance history. In...Read more about TalentComp
Brokermint
Brokermint
Cloud-based residential real estate brokerage solution including robust real estate accounting, commission automation, transaction management, and more. Simplify and automate your office to move at the speed of the market. No mo...Read more about Brokermint
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Buyers Guide
Last Updated: March 16, 2023Commissions motivate sales representatives to perform better and achieve sales goals. They are usually included as a part of a sales rep's total compensation and, in some cases, their entire compensation is in the form of commission.
Since a number of criteria determine the commission to be paid out, such as the commission plan (tiered, split, or flat rate), commission quota, and applicable taxes, this process can be fairly complex and possibly inaccurate, if handled manually.
To ensure accurate and timely commission payments, businesses can use commission software. The tool automates commission calculation and helps make timely payments to reps.
Here's what we'll cover:
What is commission software?
Commission software helps automate the calculation and tracking of commissions based on a business' commission model and other defined metrics, such as frequency and taxes.
The software ensures the accuracy of the commissions and helps make the process transparent.
Commission statement in QCommission (Source)
Common features of commission software
In this section, we will look at some of the most common features of commission software. These features will help you understand the basic capabilities a solution must offer for effective commission management.
Commission calculation | Set rules and calculate the commission for each sales rep. Define parameters and metrics for the calculation, such as goal fulfillment, applicable taxes, and maximum limits. Calculate commissions as per the preferred commission model—flat rate, split, or tiered. |
Commission tracking | Track commissions, bonuses, and overrides through detailed reports. Set the commission expectations for a certain period and track if the actual commission payouts align with these. |
Commission scheduling | Create commission schedules for sales reps. Schedule commissions as per the organization's payment frequency such as weekly, monthly, or quarterly. |
Incentives management | Define rules for incentive approval and payouts. Set the frequency for incentive calculation such as monthly or quarterly. |
What type of buyer are you?
There are three types of buyers of commission software. They differ based on the size of their operation and sales force.
Sales departments that use multiple calculation models: Sales departments often use a mix of commission plans, such as flat rate, split, or tiered, which makes the process complex. To factor in all the different methods of commission calculation, while ensuring accuracy, these departments can use commission software.
Sales departments that seek CRM integration for commission management: Sales departments may use customer relationship management (CRM) tools to manage their workflow. However, most of these tools don’t offer commission management capabilities. Therefore, sales teams try to integrate their CRM tools with commission software to calculate and manage commissions.
Benefits of commission software
The following are the key benefits of commission software. These benefits enlist the business functions that are positively impacted by commission software and how they may improve.
Reduced errors in commission calculation: Calculating commissions manually on Excel sheets increases the probability of errors. However, automating the calculations ensures accuracy and saves the time and effort that otherwise goes into rectifying errors.
Improved productivity: Timely and accurate commissions keep reps motivated to perform better, directly impacting productivity. Further, the transparency of processes allows reps to focus on sales instead of struggling to identify the parameters that impact their commissions.
Key considerations when buying commission software
As the last step to selecting a commission software, keep a few additional factors in mind. These will help you select a tool that is best suited to your business goals.
Total cost of ownership (TCO): Whether you buy one commission system off-the-shelf or customize one to your unique needs, considering the total cost of ownership is crucial. Buyers tend to think that a customized solution that offers only selected modules will cost less, however that's not the case every time. If the customized solution needs to be modified in future, additional costs involved in the exercise may add up to be more than the total ownership cost of a packaged application.
Integration: The data residing in your commission software may be of use to other business applications such as accounting software, payroll software, and performance management software. Check with the vendor if the commission management software allows integrations with other software.
Note: The applications selected in this article are examples to show a feature in context and are not intended as endorsements or recommendations. They have been obtained from sources believed to be reliable at the time of publication.