Set up commissions for team members
In this guide, you’ll learn how to set up sales commissions for your team members that are automatically tracked and included in their pay runs.
In this article
How commissions work
Commissions in Fresha are automatically tracked whenever a team member's sale is checked out, whether it’s a service, product, membership, or gift card, and flow directly into their pay run based on the rates you’ve set.
Commission earnings are included alongside wages, tips, and any adjustments in each pay run, so your team is always paid correctly based on what they’ve earned.
Commission types
You can set different commission types for each team member, giving you full flexibility over how commissions are calculated. Apply varying rates by service, product, day of the week, or location, and control how factors like discounts and taxes impact earnings.
Fixed commissions
A commission structure where a team member earns a set percentage or fixed amount on each sale, regardless of total sales or performance.
Tiered commissions
A commission structure where the rate increases as sales reach certain thresholds, allowing team members to earn higher commissions as their performance grows. For example, a team member can earn 15% on sales up to $100, and 25% on sales above $100.
Set up tiered commission for team member
- From the main menu on the left of your screen, go to Team.
- Select Team members from the left menu panel.
- In the team member list, click on a team member to view their details.
- From the team member view, click on Actions on the left and select Edit from the panel.
- In the Edit team member view, select Commissions from the left menu panel to view the team member's commission settings.
- Click Set up now to set commission for this team member.
- Select Tiered as the commission type for this team member.
- Under Sales period, use the dropdown menu to select your sales period:
- Daily
- Weekly
- Every 2 weeks
- Every 4 weeks
- Monthly
- Quarterly
- Under Rate type use the dropdown menu to choose from the following:
- Percentage of sale amount: set a percentage rate based on the sales generated by the team member. For example, a team member can earn 10% on a sale of $100.
- Fixed value on sale amount: Set a fixed amount earned per sale made by the team member. For example, the team member can earn $10 on a sale of $100.
- Under Tiers, set the percentage or value rate that the team member can earn for each tier.
1. To add multiple tiers, click on Add another tier.
- Next, select which items the commission will apply to by ticking the checkbox next to each of the following:
1. Services
2. Products
3. Packages
4. Memberships
5. Gift cards
6. Late cancellation and no show fees - You can customize each item by selecting Customize next to each, from there you can select specific individual services, products, packages etc.
- Click Continue in the top right of your screen to proceed to the next step.
- Next, select when the commission will be effective by checking an existing option, or creating a custom date.
- Click Apply in the top right of your screen to save your changes.
- The commission will sit under the team member’s commission list, with the effective date displayed.
- Click Save in the top right of your screen to update the team member’s commission settings.
Once commission tiers are enabled, assigned team members will start earning commission based on their sales targets for the selected items and included in their pay run as commission.
Set up fixed commission for team member
- From the main menu on the left of your screen, go to Team.
- Select Team members from the left menu panel.
- In the team member list, click on a team member to view their details.
- From the team member view, click on Actions on the left and select Edit from the panel.
- In the Edit team member view, select Commissions from the left menu panel to view the team member's commission settings.
- Click Set up now to set commission for this team member.
- Select Fixed rate as the commission type for this team member.
- Next, under Rate type, use the dropdown menu to choose from the following:
- Percentage of sale amount: set a percentage rate based on the sales generated by the team member. For example, a team member can earn 10% on a sale of $100.
- Fixed value on sale amount: Set a fixed amount earned per sale made by the team member. For example, the team member can earn $10 on a sale of $100.
- Under Default rate, set the percentage or value rate that the team member can earn.
- Next, select which items the commission will apply to by ticking the checkbox next to each of the following:
1. Services
2. Products
3. Packages
4. Memberships
5. Gift cards
6. Late cancellation and no show fees - You can customize each item by selecting Customize next to each, from there you can select specific individual services, products, packages etc.
- Click Continue in the top right of your screen to proceed to the next step.
- Next, select when the commission will be effective by checking an existing option, or creating a custom date.
- Click Apply in the top right of your screen to save your changes.
- The commission will sit under the team member’s commission list, with the effective date displayed.
- Click Save in the top right of your screen to update the team member’s commission settings.
To earn a portion of the cancellation fee, the team member must be assigned to the appointment, and the status must be updated to cancelled or no-show, alongside the fee being charged to apply the commission.
Set advanced options for a team member’s commission
Customise how commissions are applied for each team member, including deductions, locations, and scheduled activation days.
- Open a team member profile and select Commissions from the left menu panel.
- Next to the commission type, click on Actions and select Edit commission to update the commission settings.
- Click on Advanced options and update the following:
- Commission type (Tiered only): Choose between Progressive or Retroactive.
- Progressive commission applies higher rates only to sales above each threshold. For example, a team member earns 20% on the first $500, and 25% on any sales above $500.
- Retroactive commission applies the higher rate to all sales once the threshold is reached. For example, a team member earns 20% up to $500, and 25% on the full amount once they exceed $500.
- Progressive commission applies higher rates only to sales above each threshold. For example, a team member earns 20% on the first $500, and 25% on any sales above $500.
- Commission rules: Choose Workspace defaults or Custom. Workspace defaults use your standard settings, while Custom lets you tailor rules for this team member.
- Locations: Choose which location this commission applies to. All sales from this team member at that location will follow these rules.
- Days this commission applies to: Choose the days of the week when the commission is active.
- Click on the Continue button in the top right to proceed to the next step.
- Review the date of activation of the changes made, and click Apply in the top right to update the commission settings.
- Click on Save in the top right to apply the changes to the team member’s commission.
Once updated, any deductions will be automatically applied to the team member’s commissions, without affecting the default settings in your team commission settings.
Manage workspace default commission calculations for your team
- From the main menu on the left of your screen, go to Settings.
- Click on the Team category to access commission settings.
- In the left menu panel, select Commissions to manage how commission are calculated for your team.
- Enable each deduction or earning you want to set as a default setting for all new team members.
Once you’ve set the default commission calculation settings, they’ll automatically apply to any team member with commission enabled, unless you choose to customize their settings individually in their profile.
Automatic tracking and calculation of commissions is included in the Team Plan subscription. Learn more about the Team Plan.
FAQs
When an appointment involves multiple team members, the total commission is split based on the value of the services each team member provides.
For example, if the total appointment is $100 and Team Member A and Team Member B each perform a service worth $50, they’ll each earn commission based on their individual settings, calculated from the $50 service they performed.
You can find an overview of commission earned by team members, locations and sale items in the Commission summary report.
No, if an appointment is cancelled and no fee is applied, it won’t be included in the team member’s commission earnings. To trigger commission, a cancellation or no-show fee must be charged. Learn more about deposits and no-show protection.
