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Commision Scheme

National Premix Construction PLC developed a commission scheme to increase sales volume and achieve company targets. The scheme provides commission payments to external brokers based on concrete sales volumes. Higher rates are paid for larger volumes over 500 cubic meters. The objectives are to increase market share, improve delivery performance, and incentivize high performance. Eligible brokers include contractors, consultants, and commission agents. The scheme is governed by terms specifying payment procedures and requirements to qualify for commission.

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Hikma nura
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34 views

Commision Scheme

National Premix Construction PLC developed a commission scheme to increase sales volume and achieve company targets. The scheme provides commission payments to external brokers based on concrete sales volumes. Higher rates are paid for larger volumes over 500 cubic meters. The objectives are to increase market share, improve delivery performance, and incentivize high performance. Eligible brokers include contractors, consultants, and commission agents. The scheme is governed by terms specifying payment procedures and requirements to qualify for commission.

Uploaded by

Hikma nura
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Company Name:

ናሽናል ፕሪሚክስ ኮንስትራክሽን ኃ/የተ/የግ/ማ


NATIONAL PREMIX CONSTRUCTION PLC
1 Scheme For Sales Performance Payment System (Commission)

SCHEME FOR SALES PERFORMANCE PAYMENT SYSTEM FOR EXTERNAL


PERSONAL(COMMISSION)

Introduction
Commission refers to the compensation paid to an employees or sales agent after completing a
task, which is, often, selling a certain number of products or services. Selling products or
services is challenging, so professionals who are into sales and marketing deal with tough
competition. It is calculated based on a percentage of total sales. That means the more products
or services an employee can sell, the higher the amount they receive. Often, it’s a percentage-
based commission on the sales price or a fixed rate per sale or referral. Commission-based
incentives are the most obvious and important way to incentivize the partners to prioritize your
offerings over competitors and drive greater sales. It is a payment to the person who brings us
work for our company and this payment is what will increase the sales volume of our company
and achieve our plan. Key considerations for companies to keep in mind when creating an
effective commission scheme for external person are to increase our market share and in
order to maximize our sales volume of a company.

Depending on the nature of industry or partner strategy, we will see different commission models
and standard rates. The most common models include:

 Percentage-based commissions in which partners earn a percentage of sales they


generate.
 Fixed-rate commissions with a set a flat fee for each successful referral or sale
 Tiered commission structures with higher payment rates based on performance levels
 Recurring commissions, such as ongoing payments for subscription-based sales
 Performance-based bonuses that reward partners for achieving specific targets or
milestones
 Cost-per-action (CPA) which pays your partners for specific actions, like sign-ups or
leads
 Profit-sharing commissions in which your company shares a portion of profits with
partners
 Residual commissions that pay partners commissions on recurring sales over time
 Multi-tier commissions that reward commissions for referrals made by sub-affiliates

.
Company Name:

ናሽናል ፕሪሚክስ ኮንስትራክሽን ኃ/የተ/የግ/ማ


NATIONAL PREMIX CONSTRUCTION PLC
1 Scheme For Sales Performance Payment System (Commission)

Commission structures must be valuable enough to inspire your partners’ efforts and also aligned
with your business needs. Striking the right balance in commission rates can play a vital role in
our company’s profitability and growth.

Advantages of external commission payment system for the organizations.

 To increase market share of the company.


 In increase sales volume and value.
 Increase productivity
 Improve customer bases.
 Achieve revenue growth
 Maximize market territory
 To achieve company plan
So based on such advantages National Premix Construction Plc is develop commission scheme
that describes the terms and conditions by which your compensation as Concrete Sales
Representative shall be earned and calculated all prior written arrangements or representations
regarding our compensation.
external commission payment includes-
√Contractors
√Consultant
√Commission agent
In consideration of the Covenants and agreements contained in this Sales Agreement the parties
to this Agreement agree as follows:
1. Sale of concrete grades
The Seller will sell, the concert grades to the buyer.
2. The NPC and Seller representative both acknowledge the sufficiency of this
consideration.
3. Payment
The NPC will make payment based on described price quotation.
4. The NPC has been given the opportunity to inspect the Goods or to have it inspected.
A. Title
The Scheme for sales performance payment system (commission)
1. Objectives
1.1 Increase the market share to achieve the target sets of in the annual plan of the
organization and improve delivery
1.2 Introduce Product diversity and improve Delivery Performance of the Organization.
1.3 Expand and Diversify the Marketing Performance of the Organization.
1.4 Encouraging high level of performance team linking their performance to pay
1.5 Inculcating performance oriented culture across the organization.
2. Factors for sales performance payment system (commission)
Company Name:

ናሽናል ፕሪሚክስ ኮንስትራክሽን ኃ/የተ/የግ/ማ


NATIONAL PREMIX CONSTRUCTION PLC
1 Scheme For Sales Performance Payment System (Commission)

The following are the factors sales performance payment system (commission)

2.1 All management of NPC shall ensure the availability of the plan as per the
annual plan
3. Scope and coverage
The scheme shall be applicable to all external broker (Sales agent’s representatives)
on the position of national premix construction Plc.
4. Measurement and rate of the rate of the scheme
4.1 The sales performance payment system (commission) will be applicable for
concrete selling greater than 500 m3 volume and above.
Table 1:- SOME OF COMPITOTARS COMPANY COMMISSION RATE BASED VOLUME

S/N Company Name Quantity(m3) Rate(birr) Remark


3
1 Dugda Construction <500 50-150 Birr/m
>500 200 Birr/ m3
2 Wudber Construction >100 50-200 Birr/ m3
3 Bamcon construction 100-200 50 Birr/ m3

200-300 75 Birr/ m3
300-500 100 Birr/ m3
500-1000 150 Birr/ m3
>1000 175 Birr/ m3

Table 2:- RECOMMENDED COMMISSION RATE BASED ON VOLUME

S/N Volume Rate Remark


1 500 -1000 50 Birr m3
2 1001 -1500 100 Birr m3
3 1500-2000 150 Birr m3
4 2001 and above 200 Birr m3
5. Procedures
5.1 Finance department shall process the payment based on the scheme.
6. General conditions that make the commission applicable
6.1 The company should provide at least 500 m3 per clients.
7. Clarification / interpretation
Company Name:

ናሽናል ፕሪሚክስ ኮንስትራክሽን ኃ/የተ/የግ/ማ


NATIONAL PREMIX CONSTRUCTION PLC
1 Scheme For Sales Performance Payment System (Commission)

In the event of interpretation of any this scheme being necessary, the decision of the
approval boy shall be final and binding.

B. General Provisions
1. This Agreement cannot be modified in any way except in writing signed by all the
parties to this Agreement.
2. This Agreement will be governed by and construed in accordance with the laws of the
Country of Ethiopia and the Seller and the Buyer hereby attorney to the jurisdiction of the
Courts of the Country of Ethiopia.
3. This Agreement constitutes the entire agreement between the parties and there are no
further items or provisions, either oral or otherwise.
Effective date
This sales performance payment system pay will be implemented starting from
----------------------------------

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