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Understanding Conditional Splits
How commission splits can change based on agent performance, transaction volume, or other conditions.
What are Conditional Splits?
Conditional splits allow commission percentages to change based on agent performance or other conditions. Instead of a fixed split (e.g., always 70/30), conditional splits adjust the split percentage when agents reach certain milestones like transaction count or sales volume.
Standard vs. Conditional Splits
- Standard Splits: Fixed percentages that don't change (e.g., always 70% agent, 30% company)
- Conditional Splits: Percentages that change based on conditions (e.g., 70/30 until 10 transactions, then 80/20)
- You choose whether to use standard or conditional splits for each transaction category in a commission plan.
How Conditional Splits Work
When a transaction closes, the system checks the agent's performance against the conditional split conditions. If the agent meets a condition (e.g., has 15 closed transactions), the system applies the split percentage associated with that condition (e.g., 80/20). The system uses the first matching condition.
Common Use Cases
- Performance Tiers: Increase agent percentage as they close more transactions
- Volume-Based: Adjust splits based on total sales volume achieved
- Milestone Rewards: Reward agents when they reach specific performance milestones
- Progressive Splits: Gradually increase agent share as performance improves
- Retention Incentives: Better splits for agents who have been with the company longer
Benefits of Conditional Splits
- Performance Incentives: Rewards agents for achieving milestones
- Flexibility: Different splits for different performance levels
- Fairness: Ensures top performers get better commission rates
- Motivation: Encourages agents to close more transactions
- Scalability: Automatically adjusts as agents progress
Tip: Conditional splits are evaluated based on the agent's total closed transactions at the time the transaction closes. Make sure your conditions are based on cumulative performance, not individual transaction characteristics.
Conditional splits apply to future transactions based on current performance. Past transactions keep their original split percentages and are not retroactively adjusted.
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