I thought it would be helpful to share some information about the main commission system types that exist in the Japan recruitment market.
Third system is:
Personal Threshold Based Commission System
A personal commission very similar to a draw system and applies a revenue threshold from which %’s are applied on any revenue generated above that amount either at a fixed level or on increasing levels and bands depending on the amount of revenue made.
Pro’s
- Simple and easy to calculate
- You are paid what you earn
- Does not look like a draw system so increases engagement and motivation
- Drives individual performance
- If the percentages are high enough then it can be very lucrative
Con’s
- Commission thresholds can sometimes be higher than your personal monthly cost(draw)
- Commission thresholds can increase due to promotion or company decisions impacting your take home commission amounts
- Commission % band levels above the threshold can sometimes be much lower than standard personal draw system %’s
- Is sometimes just a draw(cost) system in disguise but with much lower commission %’s
