To set up a commission plan with a cap start by going to Settings > Commission Plans on the side menu. Click the Add Plan button.
Give your plan a name.
Select whether this plan is active or not. You can turn old plans off but leave them in the system by selecting Inactive.
Select Cap from the Type of Plan drop down.
4. Select a rollover date for this plan. The rollover date is when this plan will reset and the agent will start over from the beginning.
If you choose Start date, the plan will reset on the anniversary of the agent's start date (the start date for each agent can be entered into their Agent Profile page).
If you choose Custom Date, you can select a date of your choosing and the plan will rollover one year from that date.
If you choose Calendar Year, the plan will always rollover on January 1st.
And if you choose No Roll Over Date, the plan will never reset.
5. You can add a pre-commission credit/debit to the plan. If you charge a franchise fee off the top of each deal you can enter that fee:
Learn more about pre-commission credit/debits by clicking here.
6. Next we'll set up each level of our commission plan. If your cap is $40,000, then you'll enter $0-$40,000 for level 1. Using the example below, that will split the agent's commission at 70% to the agent, 30% to the broker, and count that 30% towards the $40,000 cap. Once the agent has paid $40,000 to the broker they'll move to a 100% split.
If you want to charge a fee for each level of your plan you can enter that info into the Closing Fee Item and Amount fields. This feature allows you to adjust your fee based on the level of the commission plan. You can choose a dollar amount or a % of the gross commission, agent's commission, or sales price.
The cap is now automatically set so once the agent has paid $40,000 in company dollar at a 70%/30% split, the agent would have capped and moved to a 100% split.
7. Next choose whether to apply a fee towards the commission plan cap?
This allows you to put a cap on the fees that were entered in the levels above that will count towards the agent's commission plan cap. So if you have a transaction fee of $500 on each deal, that fee will be deducted from the agent's commission after their split with the broker, and also counted towards their cap.
8. Next, do you have a cap on the fees? This is a different cap then the commission plan cap. This is a fee that is also deducted after the agent's split, but has it's own cap, separate from the commission plan cap. For example, if you charge 1% of the sales price but only until the agent has paid $1,000, you can set that up by adding the 1% fee based on the sales price, and select Yes to Cap on Fees, and then enter $1,000 in the Cap Amount field. The fees will be added later when we enter the levels for the commission plan. This is not where you'll factor in the cap from the commission split with the broker, this is only to track a cap on additional fees you deduct from an agent's commission.
Click Save Commission Plan
Add Additional Closing Fees
When adding additional closing fees, Admins have the option to include the additional fees towards cap on fees and towards a commission plan cap using the corresponding buttons.