Club OS offers flexible options for sales and member service commission. Sales commissions are based on the initial sale of a service agreement, and member service commissions are recorded on an ongoing basis as services are delivered. Watch the video, or read below, to learn how to create and manage commissions in Club OS.
This commission goes to whoever is named as the salesperson on an agreement. This can be any staff member who signs people up for services -- they do not have to have a “salesperson” role in Club OS. Sales Commission can be customized for specific employees, and a 'tiers' option is available to set different rates for different sales volumes.
Sales Commission Type
Choose your Sales Commission type in Pay Period Admin (My Club -> Package Setup -> Pay Period Admin tab) during initial setup. (This is a one-time setup. If you need to make changes in the future, please reach out to our support team.)
- Money Collected is based on the actual revenue collected from a given agreement. It is awarded each pay period as payments come in.
- Total Agreement Value awards commission based on the entire agreement for new agreement sales. For rewrites, it awards commission based on the added value to the agreement. It is applied in the pay period the agreement was signed.
- Down Payment Value will award commission based on the payment taken at point of sale on an agreement only. It is applied in the pay period the agreement was signed.
Sales Commission Rate
Next, go to the Sales Commission tab (My Club -> Package Setup -> Sales Commission) to set your sales commission rate.
First, select the location or locations where this commission will apply, then set the value. To keep it simple, you can use the same percentage for all sales. Here's an example of an across-the-board sales commission of 3 percent:
You can use Tiers to set different rates once certain sales targets are hit. Once you've entered the base commission rate, click "+Add Tier" to add one or more sales tiers. In this example, salespeople will receive 3% commission on sales up to 2499 per pay period, 5% on sales from 2500-4999, and 7% for sales of 5000 or above.
Next, select the effective date. Notice the warning that "Effective date may affect historical reporting." Making retroactive changes can cause confusion and discrepancies in commission reporting. It’s best practice to use an effective date that is in the future and that aligns with your pay period -- generally the first date of an upcoming pay period. The example below shows a club with a current commission rate of 5% and a new tiered commission rate set to begin at the start of the next pay period.
If you want to change the settings, it's best not to edit an active commission. Instead, modify the settings to take effect the next pay period. To do this, you can click "New Sales Commission" to start from scratch, or make a copy of an existing commission and make your changes there, making sure to set the effective date in the future.
Member Service Commission
This commission is awarded as services are delivered (based on properly completed and validated calendar events -- you can find more information about proper event management in our Training Management section).
Creating a Member Service Commission
You can add commission when you create or edit a Member Service. (My Club -> Package Setup -> Member Services)
- Per Event - Flat Rate is a good option for individual training sessions, or events that are free to clients but you still want to pay trainers for, like assessments and consultations. It is independent of the unit pricing, so make sure you are not paying out more than you can afford.
- Per Attendee - Flat Rate or Percentage can be used for group events and classes. Again, the flat rate is independent of the unit price.
Per-event and per-attendee commission can be used in combination if needed.
Editing a Member Service Commission
Once a Member Service Commission has been created for a given service, you can edit it inside the Member Service, or from the Member Service Commission tab in Package Setup. (My Club -> Package Setup -> Member Service Commission)
Editing a commission will change the original settings, and copying a commission will create a new one and preserve the original for your records.
When you click "edit", a system message appears to warn you that retroactive changes can create discrepancies on commission reports for that time period. To avoid confusion, it's best to set your new effective date in the future -- ideally the first day of an upcoming pay period.
If you need to change a commission on a particular service, it’s a good idea to make a copy, rather than edit. This will preserve the original commission for your records.
Employee-Specific Member Service Commission
You can also set specific commission for individual employees on the Member Service Commission tab. (My Club -> Package Setup -> Member Service Commission.)
Use the Employees drop-down menu to select an employee and set Member Service Commissions that are specific to them. You can customize any existing Member Service Commission. These settings will override the standard commission you created for that service, for that employee only.
Visit the Training Management section of our Help Center for more resources.