Assign Effective Dates for Payout Rules

Learning Objectives

After completing this unit, you’ll be able to:

• Explain how to set effective dates for payout rules.
  
• Describe how to use effective dates to manage payout rule transitions.
  

Similar to setting effective dates for a rep on a plan or team, you can do the same for payout rules within a plan. You manage exactly when a rule starts or stops calculating commissions on rep statements. Whether you’re introducing a new bonus, phasing out an old rule, or making seasonal adjustments, effective dates for payout rules ensure everything stays accurate and on track.

The sales leadership team at Cloud Kicks is revising the existing commission plan of 7% for all deals. While this structure is consistent, it doesn’t incentivize the reps to pursue larger deals and drive the company’s growth. With star performers such as Candace Evans joining the team, there’s an opportunity for a more dynamic approach. The new commission plan offers 7% for individual sales up to $50,000 and 10% for sales exceeding $50,000. Linda, the Salesforce admin, gets to work immediately.

To implement the new commission plan, use Spiff Designer to set an Effective Until date on the current flat-rate rule so that it stops calculating in April.

1. In the Spiff app, click Designer.
   
2. Highlight the Plans tab and select the appropriate plan.
   
3. Locate the rule in the Payout Rule Name column.
   
4. Set Effective Until date to March 31, 2025 in the corresponding column.
   

This step preserves the integrity of the rule calculations for statements prior to April 1.

Next, add two new payout rules to the plan: One for deals exceeding $50,000 and earning a 10% commission, the other for smaller deals earning the original 7%.

Set Effective Dates for a Payout Rule

With the rules finalized, it’s time to make it effective starting April 1, 2025, ensuring that commissions are calculated based on the new payout rule from that date onward.

After adding the new rules to the plan, here’s how to set the effective date for the payout rule to bring this plan to life.

1. In the Spiff app, click Designer.
   
2. Click the Plans tab and select the appropriate plan.
   
3. Locate the rule in the Payout Rule Name column.
   
4. Set Effective As Of to April 1, 2025 in the corresponding column.
   
5. Optionally, set Effective Until, if applicable.
   

When you specify an Effective As Of date, the rule doesn’t appear on rep statements or calculate commissions until this date. When you specify an Effective Until date, the rule stops appearing on rep statements after this date.

For best results, set these dates at the beginning or end of statement periods to ensure smooth transitions.

Here’s Candace’s statement for April 2025 to confirm whether the payout rules are active and calculating her commissions as expected.

As expected, Candace and the other sales members now have their commissions calculated under the new tiered plan. The rules set by Linda ensure that, starting from the assigned effective date, commissions are accurately calculated based on deal size. This transition reflects the updated plan, motivating the team to aim for larger deals.

Conclusion

With the new commission plan in place, Candace and her team at Cloud Kicks are now rewarded for pursuing larger deals, driving growth for the company. Thanks to Linda’s careful setup of effective dates, the transition was seamless, ensuring accurate payouts and renewed motivation in the team. With these tools in hand, Cloud Kicks is set for continued success.

In this module, you learned how to set effective dates for commission plans and payout rules, ensuring smooth transitions and accurate calculations. These skills help you manage sales incentives with precision, keeping your teams motivated and your data reliable. By applying these best practices, you can adapt commission structures to meet business goals and drive long-term success in your organization. Good luck!