If you have tiered compensation plans, the Zipi Team will build these out to make them as automated as possible. Therefore, once an agent has hit their CAP, they will automatically be moved into the next tier within their plan.
There are a few factors to keep in mind here:
- The Anniversary Date
- The Compensation Plan
- Approved Deals
- The Importance of Approving Deals in Chronological Order
The agents will only move tiers if the deal is approved. As a best practice, it is highly recommended to approve all deals in chronological order according to their closing date. Approving deals in a non-chronological order, can cause agents to CAP later than they may have originally.
Lets look at an example:
The Anniversary Date
The Anniversary date can be found on the agent's Contact card under Compliance. We have an agent, Scrappy-Doo, who has an anniversary date of July 1st, 2021; meaning the year starts on July 1st and ends on June 30th.
The Compensation Plan
The agent is on the following Compensation Plan:
In this case, the agent starts with a 70/30 split and has the potential to move up to a 100% split. Here, their CAP is based on the Aggregate Company Split (aka Company Contribution).
This condition can vary (i.e. Count of Deals) and will impact how quickly your agent moves tiers.
Beginning with July 1st (agent's anniversary date), Scrappy-Doo will start with a 70/30 split. As their closed deals get approved, each deal will contribute to Scrappy-Doo's CAP. According to the Compensation Plan Scrappy-Doo is on, he needs to reach $5000 in Aggregate Company Split (aka Company Contribution) to move to the next tier.
As you can see, Scrappy starts off with a 70/30 split on his first deal.
You can use the CAP Widget to monitor how much the agent has contributed to their cap.
You can read more on the CAP Widget at: How to Create a CAP Widget.
Approving Deals in Chronological Order
Although Zipi allows you to approve deals in a non-chronological order, please keep in mind it may result in a delay to your agent hitting their CAP and moving to the next tier.
Let's say Scrappy-Doo has just $500 remaining as of September 1st to hit his $5,000 CAP and move into the next tier; the 80/20 split.
If Scrappy-Doo has a deal closing on September 2nd and September 5th and you approve the September 5th deal first, you will notice the following message pop-up:
When you approve this deal, Zipi will give you a warning letting you know that there may be inaccurate payouts along with a list of future deals that have been approved. This is because Scrappy-Doo likely would have hit their CAP ($500 remaining) on September 2nd and would have progressed to an 80/20 split for the September 5th closing so now the agent was likely under paid for this deal.
On the deal board, you will see a warning icon next to the deals that have been impacted by the non-chronological deal:
You can open the deal to view the details and it will show a warning message at the top:
You can click Show Details to view the deals that have been approved out of order:
Once Scrappy-Doo hits his CAP, you will now see he is automatically moved into the 80/20 split on both the Edit Deal page and the CAP widget: