Service Commissions - An Overview
You can configure Zenoti such that employees earn commissions for services they perform. Employees may earn three types of commissions for services - Service commissions, Free Service commissions, and Service Commissions on Add-Ons.
- Service Commissions: Employees earn commissions on services they perform if the guest pays for the service in one of the following ways:
a) Using cash or card (direct payment)
b) Using prepaid card credits (prepaid card redemption)
c) Using non-zero priced prepaid cards (prepaid card redemption) or non-zero priced gift cards (gift card redemption).
Note: Administrators or business owners can decide if they want to include the price or the value of prepaid cards/gift cards to the service revenue which is then used to calculate service commissions.
Example 1: You want to include the ‘Price of the card’ as service revenue where Price (of the card) = $50 and Value (of the card) = $100.
When a guest uses this card to make a payment of $50 on an invoice, if you choose the 'Price of the card' to be included in the service revenue then, $25 [($50/$100)*paid amount] is recognized as service revenue which is then used for calculating commissions.
Example 2: You want to include the ‘Value of the card’ as the service revenue where the Price (of the card) = $50 and Value (of the card) = $100.
When a guest uses this card to make a payment of $50 on an invoice, then $50 (the actual paid value) is recognized as service revenue which is then used for calculating commissions.
Note: Contact Support if you want help with changing this configuration from ‘Price of the card’ to the ‘Value of the card’ or vice versa. The default configuration is ‘Price of the card’.
d) Using membership credits (membership credits)
e) Using packages (for which they have paid for earlier) (package redemption)
f) Using coupons such as those offering discounts/cashback on direct services in future visits (coupon redemption)
Commissions employees earn when guests pay for services using one of these methods are called service commissions.
Example: A guest avails a service and pays for it (in full) using a credit card. The employee who performed the service for the guest earns a service commission depending on configurations.
- Free Service Commissions: Free Services commissions are commissions employees earn on revenues for services for which discounts apply such as manual, campaign, and membership discounts.
Free Services commissions also cover methods of payment such as membership service credits, loyalty points, and zero-priced gift cards and prepaid cards.
Example: When guests get discounts on services as part of a manual discount, the discounts account for Free Service revenues. For example, a service costs $100, but you offer a discount of $10, so the guest pays only $90.
In such cases, your organization can decide whether to offer the free service commission either on the cost of the service ($100) or at the discounted price ($90). The free service revenue, in this case, is $10. Learn more: What are Free Services in Zenoti?
- Add-On Commissions: Commissions earned by employees on Service Add-Ons are called add-on commissions. A service add-on adds to a standard service by customizing some aspects of the service for the guest.
Example: In a standard full-body massage, you may offer a 10-minute special head massage using rosemary or cedar oil for a guest with dandruff issues. In the same example, if a guest has hair loss issues, you can change the oil to juniper oil or lavender oil. In this example, the 10-minute head massage is configured as an Add-On Service in Zenoti. Employees who perform such add-on services are eligible to earn add-on commissions.
Before You Begin
- You must configure the item level (in this case, the service) with details of the commission.
- Consider carefully the basis on which you want to award commissions for employees performing a service. Do you want to award service commissions on the basis of settings defined at employee or job profiles (revenue slabs), a flat amount, or on the basis of a percentage of revenue?
Note: Options you see are based on settings configured from Admin > Org > Settings > Employee section settings.
To configure service commissions at the Service (Item) level:
- Ensure that you are at the Organization level.
- Click Admin > Resources > Services.
- Click Add.
The Create Services page appears. The commission-related settings appear in the General tab.
- In the General tab, for Commissions option, select Yes.
- For Commission Adjustment, specify a number in percentage.
Example: If you specify 50% here, it means employees will get half the amount of commission. Similarly, if you specify 100%, it means employees will get the full amount, and 200% means, employees will get double the amount of commission.
- For Commission Type, depending on your requirement, select one of the following:
- Settings defined at the Employee or Job Profiles
- Flat amount
- Percentage of revenue
Note: Options you see are based on settings configured from Admin > Org > Settings > Employee section settings
7. Click Next.
8. [Optional] Enter or select details for Pricing, Products, Resources, Custom, Catalog, Variants, Related, and Add-Ons.
9. Click Finish.