Profit-Based Commission Calculation

SalesKing can calculate commissions based on product profit instead of product price.

Normally, a commission rule is calculated from the sale price of the product. With profit-based commission calculation enabled, SalesKing first subtracts the product cost from the product sale amount, and then calculates the commission from the remaining profit.

You can enable this option in:

SalesKing → Settings → Commission Calculation → Profit-based commission calculation

Setting Product Costs #

For profit-based commissions to work, product costs must be entered for each product or variation.

SalesKing supports product costs from either of these sources:

1. WooCommerce Cost of Goods Sold, the built-in WooCommerce feature
   Documentation: WooCommerce Cost of Goods Sold
2. Cost of Goods for WooCommerce, the free plugin by AlgolPlus
   Plugin page: Cost of Goods for WooCommerce

How Profit-Based Commissions Work #

Here is an example of how this works:

For example, let’s say you have a product with:

Product cost: $70

Product price: $100

The profit is:

$100 - $70 = $30

If we have a 10% commission rule in SalesKing -> Commission Rules:

The agent's commission for the above product will be calculated as:

10% × $30 = $3

So in this example, the agent receives a $3 commission.

Why Use Profit-Based Commissions? #

Profit-based commissions are useful when you want sales agents to earn commission only from the actual margin of a sale, instead of the full product price.

This is especially helpful when:

• Products have high costs and low margins.
• Different products have different profit margins.
• You want commission payments to better reflect business profitability.
• Agents can offer discounts or custom prices, and you want commission to follow the remaining profit.