What is a sales commission tracking software? A sales commission tracking software revolves around the idea of automating and streamlining the management of sales commissions within a company or organization. This software is designed to simplify the process of calculating, monitoring, and distributing sales commissions to sales representatives, agents, or employees who earn a portion of their income through commissions.  Sales commission tracking software is created to make the employee and employers lives easier.

There are several compelling reasons why companies require sales tracking software, with key factors including performance monitoring, data analysis, and enhanced efficiency and productivity. Implementing sales commission tracking software can significantly improve business operations and stimulate growth.  We have companies that have recorded production improvements up to 85% in year 1 of using the Plentive software.

What are Sales Commissions?

In the world of sales, we always hear about the term “sales commissions.” It’s a phrase that gets thrown around quite a bit, but what exactly are sales commissions, and why are they so important?  Sales commissions are a form of compensation that rewards salespeople, representatives, or employees based on their performance in generating sales. Unlike a fixed salary, which provides a consistent income regardless of sales results, commissions are directly tied to the amount of revenue a salesperson brings in. Essentially, they serve as a financial incentive for sales professionals to strive for higher sales figures.  Now a days the common practice for SDR’s is an hourly pay, or salary, along with the ability to earn incentives.

What is a Sales Commission Tracking Software?

Sales commission tracking software is created to make employees and employers lives easier.  Here are some key features of a sales commission tracking software.

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  1. Sales Performance Monitoring: It tracks and records sales performance data, such as the salesperson’s name, date of sale, product or service sold, and the total sales amount.
  2. Commission Calculation: The software automatically calculates commissions based on predefined commission structures, which could include fixed percentages, tiered rates, bonuses, or other complex formulas.
  3. Transparency: It provides transparency to both the sales team and management, allowing them to see how commissions are calculated and earned.
  4. Real-Time Updates: Many software solutions offer real-time updates, so salespeople can track their commissions as they make sales. This motivates them to meet their targets. Employees love seeing the real time tracking on the sales dashboard with Plentive’s software.
  5. Customization: Users can often customize the software to match their specific commission plans, including different rates for different products or services.
  6. Integration: It may integrate with other business systems like customer relationship management (CRM) software, accounting software, and payroll systems to streamline the commission process.
  7. Reporting and Analytics: Sales commission tracking software often provides reporting and analytics features to help businesses analyze sales performance tracking and commission payouts.
  8. Compliance and Accuracy: This ensures that commission calculations comply with legal and business rules, minimizing errors and disputes.
  9. Notifications: It can send automated notifications to salespeople when commissions are earned or paid out. How fun is it to get a notification that you just earned a bonus!
  10. Data Security: Maintains the security of sensitive sales and compensation data.
  11. Historical Data: Keeps historical records of commissions for auditing and record-keeping purposes.
  12. Ease of Use: User-friendly interfaces make it accessible to both sales representatives and management. Being easy to use, is a must!

Different Type of Sales Commission Tracking Software

Sales commission tracking software comes in various types and can be categorized based on their functionality and the specific needs of a business. Below are 2 different types of sales commission tracking software.

Standalone Sales Commission Software:

Standalone sales commission software is dedicated commission tracking tools designed solely for managing sales commissions. They are often highly specialized and offer robust features for commission calculations, tracking, and reporting.  Standalone sales commission software is a dedicated software solution designed specifically for the purpose of tracking, calculating, and managing sales commissions within an organization. It serves as a specialized tool to streamline the commission management process and offers a range of features tailored to the unique needs of sales compensation. Standalone sales commission software is particularly valuable for companies with complex commission structures and a significant number of sales transactions. It simplifies the management process, fosters trust, and ensures that salespeople are adequately rewarded for their efforts, ultimately contributing to improved sales performance.

Integrated Sales Commission Software:

Integrated software solutions incorporate commission tracking as part of a broader suite of sales and CRM (Customer Relationship Management) tools. This type of software offers seamless integration with other sales and customer management systems.  Integrated sales commission software is a specialized tool designed to automate and streamline the process of calculating, managing, and disbursing sales commissions within an organization. Sales commissions are a common method of incentivizing sales teams and individuals by rewarding them with a percentage of the revenue share they generate through their sales efforts. Managing these commissions can be complex, especially in larger companies with multiple salespeople, different compensation structures, and various sales channels. Customization and integration enhance efficiency in a company. Integrated sales commission software is a solution that helps organizations effectively handle this aspect of their sales operations.

Benefits of Using Sales Commission Tracking Software

Companies use sales commission tracking software for a variety of reasons, but we have narrowed it down to 5 of our favorites:

  • Accurate and Automated Calculations: Sales commission tracking software ensures accurate and consistent commission calculations. As the saying goes, “we are only human” this benefit eliminates the potential for human errors in manual calculations. This accuracy is crucial for ensuring that salespeople are fairly compensated for their efforts.
  • Time Savings: We could all use an extra hour or two in the day. Automating commission calculations and tracking processes saves time for both sales teams and administrative staff. It reduces the administrative burden associated with managing commissions, allowing employees to focus on more the items that bring more value, such as selling and customer relationship management.
  • Transparency and Accountability: Sales commission software provides transparency into how commissions are calculated. We’ve all been in an office where the “favorites” are obvious.  Commission tracking software offers transparency that helps salespeople understand their earnings and ensures fairness and accountability in commission payouts. It reduces disputes and misunderstandings related to compensation.
  • Incentive Alignment: Commission tracking software allows companies to align their compensation plans with their sales objectives and strategies. Owners can easily implement and adjust different commission structures to motivate specific behaviors or achieve sales targets for each individual employee. 
  • Performance Management: With the data and insights provided by commission tracking software, sales managers can effectively manage and evaluate the performance of individual sales representatives and the sales team as a whole.  Sales dashboards are very helpful for employees to see where they stand and what they need to accomplish to improve their incentives.

Overall, sales commission tracking software simplifies and optimizes the management of commission-related processes, enhancing accuracy, transparency, and efficiency. It also helps organizations align compensation with their strategic goals and motivates sales teams to perform at their best.


Sales commission tracking software helps businesses streamline the commission management process, reduce administrative errors, motivate their sales team, and ensure fair compensation for their sales efforts. It’s particularly valuable for companies with complex commission structures and a significant number of sales transactions.

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