One of the many ways that a company makes revenue is through commissions. This is generally for services delivered during a "deal" or for management of someone else's assets. Examples of this revenue model include Estate Agents, Asset Managers, Shipbrokers or Recruiters.
Commission is % of the Gross Value of something - Let's look at an estate agent as an example:
The business sells a house for £500,000 and has agreed a 1.5% sales commission. This means that the revenue to the business for successfully selling the house is:
- Select the revenue from the dropdown menu
- Select Average Days Given
- Enter a "Project" name e.g. Commercial Property or Junior Candidates
- Click "Add Project"
- Next enter for each forecast year the Average Gross Value, Number of "Projects" per month" and % Commission Level