Does Commission Automation Save Money?

by | Jun 1, 2022

Your time is valuable. Ideally, every project you or your employees undertake should provide value to the business. That’s why it’s time to rethink how your commission administrator manages commissions. If you or anyone at your company is wasting time on spreadsheets and commission reports, you’re throwing money away. Commission automation can help.

The old, traditional ways of calculating commissions are obsolete. So much of it can be automated now and it’s worth an investment. If you’re not sure about that, we can prove it to you.

Automating commissions saves time, money, and resources — for you and for the business as a whole. Need a reason why your company should consider investing in automation?

An image of an hourglass sitting on sand representing the time one can save by commission automation.

Time is valuable for your business and commission automation helps you save that time — and money.

We’ve done a cost comparison below. Estimates are based on the average salary for an administrator of $58,473 or about $28 per hour. That’s compared to the Core Commissions Enterprise package with 25 employees earning commissions, which starts at $625 per month. We approximate that you’ll use automation at least 40 hours per month meaning it would cost about $16 per hour.

Data Sourcing vs. Automation

Data Sourcing: When an individual is left to hunt down data and numbers on their own, it can consume endless amounts of time. Typically the data required to calculate commissions lives in a multitude of places, meaning the person responsible must dig through all of those sources on their own. This step is generally just preparation for commission calculation and it alone can take a full day to organize. Cost: $224 every cycle.

AutomationIntegrating data sources with commission software greatly decreases the amount of time needed for this task. Even just exporting a document from the source and importing it to your software eliminates a lot of work. This kind of automation requires a little setup on the front end but ultimately, you’ll be able to spend less time on this task — maybe an hour. For a company with a salesforce of 25, the cost drops to about $44 every month. This includes the administrator’s hourly rate plus the approximate Core subscription cost.

Spreadsheets vs. Automation

Spreadsheets: If an administrator uses spreadsheets to map out sales and commission data, it can take days to get all the numbers in the right place. Once they’re done, formulas need to be checked and results need to be audited. The whole process takes up a big chunk of someone’s time and still comes with a huge risk of error. Those errors eat up even more time and could cost even more. Cost: $448 every cycle or more if errors are found.

Automation: After an implementation period, calculating commissions happens with the click of a button. Additionally, any risk of error is completely eliminated because commission software runs calculations exactly to your specifications. With Core Commissions, administrators can even view all calculations in a single view to quickly audit for potential errors just in case. We round the time required here up to one hour and the cost drops to $44 every month.

Image of a jar full of quarters with a branch of a plant growing indicating the amount of money that can be saved through commission automation.

Manual Reports vs. Automation

Manual Reports: Once data has been sourced and commissions have been calculated, it’s time to create reports. Every individual earning commission needs documentation that details what they earned and how. Building those reports manually gets tricky when an administrator has to dig through spreadsheets to find all the information. Then it must be formatted in an understandable way and emailed to each employee. Done right, this task keeps employees informed and prevents disputes but it takes at least a few days to get it right. Add in the time it takes to email each document to each individual. This is at least a 12-hour job. Cost: $336 per cycle.

Automation: With all the data necessary for a report already present, commission software easily distributes it into reports. Formatting is easy too. In fact, Core Commissions offers a library of report templates cutting out the time necessary for that task. Then the bulk email feature, which automatically emails the right reports to the right people, cuts down on that work. Those administrators who want to get away from email altogether have the option to use the Sales Web Portal, allowing payees to view their commission earnings at any time. Automation cuts down the job by 85% and costs about $87.25.

We’d be happy to walk you through all the ways Core Commissions can add value to your business. Contact us to schedule a demo and we’ll tell you even more ways we save you money.

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