Revenue-based commission incentivises the wrong thing
A commission plan based purely on booking revenue quietly encourages salespeople to chase large, low-margin bookings and offer discounts without much regard for the resulting profit — the salesperson is rewarded the same either way, so there's no incentive to protect margin.
Why this is hard to fix without the right data
The obvious fix — base commission on profit, not revenue — is hard to implement if profitability per booking isn't visible at the point of sale. Many agencies stick with revenue-based commission simply because it's the only number they can calculate reliably in real time.
Designing incentives around real profitability
Once supplier cost is linked to every booking and gross margin is visible immediately, a commission plan can be built around actual profitability — rewarding salespeople for deals that are genuinely good for the business, not just large.
How Muhasib supports this
Because Muhasib shows gross margin per booking at the point of confirmation, agencies can design and run commission plans based on real profitability rather than revenue alone.