Trying to figure out the formula for a sales rep who is over 100% of her quota. She gets Overachievement Commissions calculated as 2% of the Annual PS & Off-Site Revenue Commission opportunity forevery 1% that she exceeds her Annual Quota up to 150% of the Annual Quota. Overachievement Commissions over 150% of the Annual Quota willbe paid at 1% for every 1% that she exceeds 150% of the Quota up to 200% of quota. Nooverachievement commissions will be paid over 200% of Quota.
Here's an example:
Example (overachievement): A Manager has an annual Commission opportunity of$21,000. If the Manager is at 105% of Annual Quota at the end of January and has earned$14,175 YTD, he/she will receive $21,000 + Overachievement – YTD earnings through December = $21,000 +$2,100 (5% x 2 x $21,000) – $14,175 = $6,825.
Further, if at the end of February the Manager is at 115% of Annual Quota, the Overachievement calculation wouldbe: $21,000 (100% of Quota) + $6,300 (15% x 2 x $21,000) – $23,100 (YTD earnings already paid) = $2,100.
Here's an example:
Example (overachievement): A Manager has an annual Commission opportunity of$21,000. If the Manager is at 105% of Annual Quota at the end of January and has earned$14,175 YTD, he/she will receive $21,000 + Overachievement – YTD earnings through December = $21,000 +$2,100 (5% x 2 x $21,000) – $14,175 = $6,825.
Further, if at the end of February the Manager is at 115% of Annual Quota, the Overachievement calculation wouldbe: $21,000 (100% of Quota) + $6,300 (15% x 2 x $21,000) – $23,100 (YTD earnings already paid) = $2,100.
