Tiered commission explanation

Tiered commission is where the commission rate is based on different levels or tiers of performance or sales volume. Instead of a flat commission rate, the commission percentage increases or decreases depending on achieving specific targets or milestones we have agreed on together. 


Here's a simple example

  • Tier 1: Sales up to €10,000 → 10% commission
  • Tier 2: Sales from €10,001 to €20,000 → 7% commission
  • Tier 3: Sales above €20,000 → 5% commission

In this scenario, if you generate up to €10,000 your commission will be 10%. If you surpass €10,000 in sales, the commission rate decreases to 7%. If you exceed €20,000 in sales, the commission rate further decreases to 5% for any sales beyond the set threshold.

Re-calculation & invocing

The final commission will always be calculated based on a full year of sales. This means that at the beginning of the following year, we will re-calculate your commission over the previous year, Jan-Dec. However, this doesn't mean you won't be invoiced monthly. We will still invoice you monthly.

Excluding otherwise agreed upon, we usually start invoicing the lowest tier (Tier 1), and then after the one-year cycle, when you've achieved other goals, we will re-calculate and either send an invoice with the remaining sum we are owed or refund the commission we've collected that does not apply anymore.

Using the previous example, this would mean over one year, we would invoice you according to Tier 1 and, therefore, a commission of 10%. However, the following year, we'd examine whether or not, within the previous year, you've achieved sales above €10,000 of Tier 1.

Suppose you've achieved Sales of €25,000. This will mean your commission over the year will drop to 5%, and we will return the difference between the commission according to this calculation vs. the sum we've invoiced based on Tier 1.

💡Good to know

Please be aware that our current pricing packages no longer include an option for tiered commission, which only applies to agreements with existing long-term partners. Yet, please know that pricing may be subject to change upon agreement renewals.