Tiered commission works so that the commission per unit increases once each quantity within a “tier” has been sold. To illustrate, imagine that your sales representative has just sold 7 units of property.
With tiered commission plan, the first 1-5 units would entitle for 2% commission rate each. The next 6-10 units would entitle for 3% commission rate each, and the final “tier”, anything above 11 units would entitle for 4% commission rate each.
Tiered commission by units sold
Tiered commission by total sales achieved