Different Commission models configurable in Sippy
In this commission scenario, we will assume that commissions are being paid to either a reseller of your voice services or as an Account Manager. A simple, single reseller model will be used as an example.
The two options that are configurable within Sippy are:
- Rates-based commission method - Commissions earnings from graduated rates structures. Configurations can be based upon either self-assigned profit margins - an exclusive commission model, or commissions earnings as assigned by you - an inclusive commission model.
- Commission Agent method - Configuring a commission agent will pay a dividend of all calls of a specified entity to the Agent. An agent can either be an Account or Customer. The commission earned is a percentage of total call revenue.
1. Rates-based commission method
A Customer entity will be used for your reseller.
- By assigning a "Customer" entity, you will be able to isolate all of your reseller's clients' calls and configurations within a Customer sub-structure.
- The Customer entity creates a sub-structure additional to your primary business configuration. The result is a second layer of business management in an exclusive web environment and as a consequence results in a second layer of rates.
- Configuring a Customer will provide restricted web access for specific use cases - such as resellers or some NOC support agents. System Management, Vendor, and Routing management are not accessible through your Customer web portal, with other privileges enabled/disabled on the Permissions page.
- The Customer sub-structure adds an additional layer of rates to your primary business configuration to allow for rates-based commissions.
Layer 1: Primary business configuration | Layer 2: Customer sub-structure | ||
Destination Set | Tariff | Customer entity | Reseller's Accounts |
Vendor rates - your Buy rates | Base sell rate is assigned to Customer. | Customer's Tariff (reseller's sell rates) | Reseller's Accounts (customers/users) |
ie. Your buy rate + profit margin. | ie. Your sell rate + additional profit margin for the reseller. |
The following diagram is to highlight the graduation of rates from Vendor to your reseller's customers/users:
Layer 1 configuration overview:
- Sippy's "Destination Set" is your Vendor's rate sheet - your Buy rates.
- Sippy's "Tariff" is your customer's rate sheet - your Sell rates.
- When creating a "Customer" the entity must be assigned a base Tariff. These are the base rates that all calls will be charged that are passed through your Sippy Softswitch from within the Customer.
- Reports filtered for this Customer only will show all calls originating from all Accounts within the sub-structure, charged with the base tariff.
- Your reseller's customers are managed by your reseller from their personal web portal, not as part of your primary business Accounts.
- Your reseller's web portal accessibility/privileges can be managed through on the Permissions page on root customer's Customer Menu.
Layer 2 Customer sub-structure overview:
- Your reseller has their own web portal that they use to manage their customers and their Tariffs.
- Within the Customer sub-structure (reseller's web portal), the secondary "graduated" Tariff will then be assigned to your reseller's customers/users. The graduated Tariff is the resultant rates that are made up of:Your vendor's rates + Your profit margin + Your reseller's profit/commission
- Selecting whether to include commission in your Customer's Tariff will achieve moderately different commissions structures:
- Exclusive commission rates assigned to the Customer (reseller) will empower them to resell your services at a commission rate of their choice. The base Tariff will already have your business profit accounted for, resulting in a simple reseller model for you to manage.
- Inclusive commission rates assigned to the Customer will either:
- Exclusive commission rates assigned to the Customer (reseller) will empower them to resell your services at a commission rate of their choice. The base Tariff will already have your business profit accounted for, resulting in a simple reseller model for you to manage.
- Require manual accounting outside of Sippy for commissions remuneration at the end of a billing cycle, or
- Require a Commission Agent to account for a total % of revenue to be aggregated to a separate entity.
2. Commission Agent method
- A commission agent is an entity that will receive a percentage (%) of total revenue from every call made by another Account or Customer.
- The percentage of revenue is calculated from the total call revenue from all billed calls, not from their profit margin.
- The paid commission value will add to the Reseller's entity Balance and will display a resulting CDR from the call.
Primary business configuration | Commission agent | ||
Destination Set | Tariff | Account | Reseller entity (Customer) |
Vendor rates - your Buy rates | Your sell rate is assigned. ie. Your buy rate + profit margin. | Calls billed by Tariff rates. | Received a percentage of revenue from every call by nominated Account. |
The following diagram is to highlight the commission agent earning model:
Commission Agent configuration overview:
- Sippy's "Destination Set" is your Vendor's rate sheet - your Buy rates.
- Sippy's "Tariff" is your customer's rate sheet - your Sell rates.
- With this model, your reseller's Accounts are directly configured into your primary business configuration - the "Root Customer".
- Your reseller's customers are managed by your company.
- All billed calls from Account A1 & A2 will pay a designated commission percentage of total call revenue to the Agent.
- The commission agent will receive a Balance adjustment in their account (positive or negative) for the earned commission from each call.
- The commission agent will have a CDR relating to each call made and the resulting commission adjustment earned.
What are the advantages of each model?
1. Rates-based commission business model:
- The Rates-based commission model empowers the reseller with increased control and management of their own customers.
- Your company retains control of the Permissions that you wish to grant to your reseller's personal web portal as well as their base rate sheet and routing.
- The Rates-based configuration can help segregate diverse business models on your Sippy Softswitch. Employing the multi-layered Customer entity can divide Wholesale from Retail business models, and direct business Accounts from your Reseller's Accounts, for example.
- The multi-layered Customer concept will empower your resellers to recruit resellers of their own with a second layer of sub-customer. See the Customer document for more information.
- Reporting is run on reseller-wide (Customer) activity.
2. Commission agent business model:
- Your company retains management of each of your reseller's customers' Accounts.
- Your base Tariff includes your profit margin and reseller's commissions for simplified configuration.
More information:
- Commission Agent Setup document - how to configure your commission agent.
- Customer document - overview of the multi-layered Customer concept.
- Tariffs and Rates document - overview and uploading of your rates.
- Understanding Rating and Billing - More detail on how to setup your rates for billing.
- Destination Sets - Overview of the grouping of your Vendor's rates