What is commission software?
Commission software is a system that calculates sales commission automatically from CRM and ERP data, instead of someone working it out in a spreadsheet. The system knows the commission plan, creates a statement for each rep and sends approved amounts on to payroll. For how to choose a system, read the full guide to commission software.
The broader category is ICM (Incentive Compensation Management), and commission software is part of what is called sales performance management.
What does commission software do?
- Pulls in data: won deals from the CRM and invoices from the finance system.
- Applies the rules: rates, tiers, quotas, crediting, clawbacks and corrections.
- Creates statements: a commission statement per rep and period, where each line traces back to a deal.
- Runs approvals: managers and finance approve before anything is paid.
- Sends to payroll: approved amounts go to the payroll system or out as a payroll file.
- Shows reps their number: reps can follow their commission as it moves instead of waiting for the payslip.
When do spreadsheets stop working?
A spreadsheet works fine for a few reps and a simple plan. Typical signs you have outgrown it:
- The monthly run takes hours, and only one person understands the formulas.
- The plan has tiers, accelerators, split credit or clawbacks.
- Reps often ask how their number was calculated, or find errors.
- Data has to be copied by hand from the CRM and the finance system.
Example: with 12 reps and 40 minutes to build and check each statement, finance spends 12 × 40 = 480 minutes, or 8 hours, every month. Over a year that is 8 × 12 = 96 hours, before corrections and questions from reps are counted.
FAQ
What is commission software?
A system that calculates commission automatically from CRM and ERP data, creates statements for reps and sends approved amounts to payroll.
What is the difference between commission software and a CRM?
The CRM tracks customers and deals. Commission software uses the deals as data and calculates what each rep should be paid.
How do you choose commission software?
Look at integrations with your CRM and payroll system, how flexibly plans can be set up, and what reps can see. The full walkthrough is in the guide to commission software, and for teams across several countries in commission software for European sales teams.
Prowi is commission software
Prowi calculates commission live from CRM and ERP data, such as HubSpot, Pipedrive, Salesforce and e-conomic, shows reps their number in the mobile app and sends approved amounts to payroll, directly to Zenegy or as a payroll file. Read the guide to commission software to see what to look for, or book a demo.
In Prowi
Every term on this page is a rule you can write into a commission model in Prowi. The model reads the deal from HubSpot the second it closes, applies the rule, and the rep sees the result on their phone before the day is over.