Commission Math Question

[savagenoob]

OK. I can't figure this math out. Ill give you the scenario.

You plug a number into a field, lets just say "8". This is an average number a rep would expect of new accounts signed up per month forever. Of these 8 new accounts signed up per month, they will generate $691.20 of commission per month for lets say "me". So next month will be 16 accounts and $1382.40 of commission. The part that I cant figure out and the twist, is that when the 1 year mark hits after the original commission "I" get renewal commission of the same amount. So those original 8 accounts would generate 1382.40 every month from year 1 to year 2, then it would go to $2073.60 and so on. I want to basically show from month 1 to another date, like 5 years from now, what my commission would be every month (showing the growing income).  So at the end of one year I will have 104 accounts signed up, at the end of 2 years 208 and so on.

Confusing I know.

[requinix]

How are you getting 104 accounts after one year? That's 8*13.

And why is it $1382.40 per month? Isn't it $86.40 per account?

[savagenoob]

Because month 2 I would have 16 accounts, not 8. Yeah, on the 8*13, I messed up. I was thinking 2 per week for 52 weeks, but lets just say 8 per month. Can you help with the math or just point out the mistakes?

[requinix]

What? So you think I'm going to be able to give you a sensible and accurate answer when you aren't even giving the right information? When it seems like you're contradicting yourself? When what you say doesn't make sense? Ah yes, I forgot that I have a crystal ball I can look into that tells me exactly the answer you need without having to care about actually understanding the problem description.

 

So (basically) at the beginning of month 1 you have 8 accounts. At the end you still have 8, but the next day (beginning of month 2) you get 8 more. So during month 12 (last of year 1) you have 8*12=96 accounts. Then the next day (beginning of month 13/year 2) you get 8 more...

mo | accts |    $/mo
---+-------+--------
1 |     8 |   691.20
2 |    16 |  1382.40
3 |    24 |  2073.60
4 |    32 |  2764.80
12 |    96 |  8294.40
24 |   192 | 16588.80
36 |   384 | 24883.20

That's just

amount made at the end of month #M if there's (on average) A accounts added per month
= M * A * $86.40

 

The thing I don't get is the "renewal commision". The "same amount" as when? Why the second month? Why does it go from (the $/mo of month 2) at year 1 to (the $/mo of month 3) for year 2? You have a graph or table or something with numbers?

[savagenoob]

You have the chart correct except the renewals, which is what gets complicated for me as well. On month 13, you would get the normal pay, plus the same pay you recieved on month 1. On month 25 you would get normal pay, plus month 13 pay, and month 1 pay, and so on with all the months in between and forever on.