Creating a commission structure for a product billed based on usage can be challenging, but here's a suggested approach:
Define a baseline: Establish a fixed percentage or amount that will be paid as a commission for each deal, regardless of usage. This baseline provides a minimum level of compensation for the salesperson's efforts.
Set tiers based on usage: Determine different tiers based on the monthly worth of the deal, which will be known a month after the sale. For example:
Tier 1: <$1,000 in monthly worth (No additional commission)
Tier 2: $1,000 - $5,000 in monthly worth (2% additional commission)
Tier 3: $5,000 - $10,000 in monthly worth (5% additional commission)
Tier 4: >$10,000 in monthly worth (10% additional commission)
Calculate commission: Once the monthly worth is known, calculate the commission based on the applicable tier. For example, if the monthly worth of a deal falls into Tier 3 ($7,500), the salesperson would receive the baseline commission plus a 5% additional commission based on the usage.