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Creating a Multiplier


Multipliers allow you to create more complex compensation rules by multiplying the output of one rule by a percentage factor defined in the multiplier rule. For example, you might create a compensation plan with a rule that pays sales representatives 5% of each deal they close, and also ties compensation to a quota achievement. You might create a multiplier rule that contains a percentage factor based on the percentage of quota achieved.

When you work with multipliers:

  • You can multiply plan rules from different plans
  • The plan rules can have different attributes.
  • The two plan rules must have the same measure period.

Multiplier Scenarios

The following scenarios show how multipliers can be used.

If a sales representative closes deals worth $100,000 in revenue and earns a %Quota achievement of 80%, then the calculation engine multiplies the $100,000 (output of the first rule) by 90% (factor defined in the multiplier rule), resulting in a compensation total of $4,500.

In this case, Plan A has a rate table different than the rate table for Plan B, and each plan uses different performance measures. One rule references the other as a multiplier rule. It has a different rate table with difference commission rates for each tier. In the multiplier rule, instead of a commission rate, the rule has some multipliers. Compensation on the normal rule is a combination of the payout of that commission multiplied by the multiplier. Table 19 illustrates this scenario.

Table 19.  % Quota, Multiplying Factor, and Resulting % of Deal Payout
%Quota
Multiplying Factor
Resulting % of Deal Payout

0-75%

80%

4%

75%-85%

90%

4.5%

85%-100%

100%

5%

In another example, you want to pay sales representatives a percentage based on the quarterly customer satisfaction percentage value. You set up a plan with one plan rule for revenue, and another plan rule for %Quota. The output of the revenue plan rule is multiplied by the percentage defined in the customer satisfaction plan rule. Each plan rule has different attributes.

  • % Quota plan rule. Table 20 shows the attributes for this plan rule.
    Table 20.  % Quota Plan Rule
    Performance Measure
    Low Value
    High Value
    Multiplier

    % Quota

    70

    80

    70%

    % Quota

    80

    90

    80%

    % Quota

    90

    100

    90%

    % Quota

    100

     

    100%

  • Revenue Commission plan rule. Table 21 shows the attributes for this plan rule.
    Table 21.  Revenue Commission Plan Rule
    Performance Measure
    Low Value
    High Value
    % Deal

    Revenue

    100,000

    150,000

    1%

    Revenue

    150,000

    200,000

    2%

    Revenue

    200,000

    250,000

    3%

    Revenue

    250,000

     

    4%

The %Quota plan rule contains multiplying factors in the rate table. The calculation engine multiplies the output of the revenue plan rule by one of these multipliers based on a %Quota achievement. For example, if a sales representative closes deals worth $230,000 for the month, and the sales representative's %Quota Achievement score is 85, the calculation engine performs the following calculation:

(230,000 3%) 80%

The sales representative's total compensation is $5,520.

Selecting a Multiplier Plan Rule

Use the following procedure to specify the multiplier plan rule.

To select a multiplier plan rule for a plan rule

  1. From the application-level menu, choose View > Site Map > Incentive Compensation Administration > Plans.
  2. In the Plans list, select a plan, and then drill down on the hyperlink in the Name field.
  3. Click the Plan Rules view tab, and choose a rule.
  4. In the Plan Rule form, click the select button in the Multiplier Plan Rule field.
  5. In the Pick Plan Rule dialog box, select a plan rule, and then click OK.

    Plan rules with a matching measure period appear.

Siebel Incentive Compensation Administration Guide