How to Calculate Commission Smarter for Energy Suppliers

3 min read
17 April, 2023

As retail energy providers, knowing how to calculate commission can be one of the most daunting aspects of your job. With numerous clients and different plans, it can be hard to keep everything organized. Commission calculation tends to be the most stressful time during the process. An accurate understanding of the process, knowing how to calculate commission, and using quality energy commission software to make the process easier are some of the best ways to eliminate unnecessary stress. Let’s start with the basics and then cover everything you need to know for smooth commission calculation. 

Understanding Commissions: A Breakdown

Understanding commission in the energy industry is essential. If you incorrectly input commissions, you can negatively affect your business's revenue. As retail energy suppliers, you likely earn your living or pay your staff by commission. No matter your industry or job, the commission is always based on the number of sales an individual makes. Commission can be a portion of their salary and base pay. In the energy industry, the amount of commission can also be determined by how much energy the client uses each month.

The commission will never be a one-size-fits-all approach. As retail energy suppliers, you must be prepared to be flexible. Commissions can fluctuate throughout the year, and offers may need to be adjusted to attract new clients. Your reputation and level of experience can also affect your commission rate. Understanding that commission is an ever-changing aspect of the industry is crucial to a happy and successful career. Utilizing commission management software can simplify the process and help you increase sales.  

How to Calculate Commission

Commission can fluctuate from month to month, depending on the number of clients they have. Each account may have a different fee. By adding the commission for each account, you can determine how much they will make each month. However, as the amount of energy fluctuates, so does the total commission. The chart below breaks down how much commission one would make based on a fee of $0.005. Notice how electricity usage increases and decreases monthly, impacting the overall commission. 

Formula:  Usage (kWh) x Fee = Commission

Electricity Usage (kWh)




























Automate Your Calculation

Whenever you began your career in the energy industry, you were probably taught to use spreadsheets to track all pricing and data. While that is an essential skill as an energy supplier, it is no longer the only way to keep accurate data. With new technology, there are other methods than manually inputting and calculating every number. Creating a set calculation, adding it to software, and letting it do the work for you will be a time-saving feature to add to your workflows.

Essential Features of Energy Commission Software

Every commission management software is different, but there are essential features every system should utilize. Having a reliable way to track energy commissions is essential. With multiple individuals earning commissions from the same sale, you need a way to track the financial side accurately. Custom compensation plans are a lifesaver for anyone dealing with commissions in the energy industry. These can help you create and keep track of unique pay schedules, work with multiple professionals on one account, and assign the corresponding commission pay schedule to a specific client account. Utilizing a commission plan will streamline the whole process, creating a better experience for everyone involved. 

Ensuring you provide the paycheck promptly and accurately can help boost a relationship. A system that gives you a master view into outstanding balances, creating an approval process that must be completed before the commission is sent, and automatically sending the paycheck simplifies the process and eliminates unnecessary steps. 

Above all, retail energy suppliers need a way to track every dollar spent on their business — including commission payouts. Happy customers are important, but so are your salespeople. Ensuring that your salespeople get their paychecks is one of the best ways to show that you care for them, but you also need to keep track of spending on your end. An overview of every commission payment that customers and accounts categorize is one of the best ways to ensure you pay your team while tracking your overall spending. Powerful energy commission software can help you keep a master record. It can help you know what you have recently spent, upcoming commission payments, dates, and important files, so you are never left wondering.   

Create a Smarter Commission Plan

Keeping track of commission can be a lengthy process with multiple steps and an abundance of numbers that must be accurate. When you keep a spreadsheet of your team’s commission, it can quickly become disorganized. You may dread commission calculation because it takes up so much time. Finding a way to automate your commissions can ensure your team is paid accurately and on time while making your job easier. To learn more about calculating energy commissions and streamlining the process, check out our free guide, Top 7 Ways to Handle Energy Commissions, today!

Download Our Energy Commissions Guide

How Can You Experience Greater Efficiency and Increased Profits? 7 Ways to Handle Commissions Guide

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