Earning Calculations

Market Baselines

You should have been emailed a copy of the Market Baselines for your company.  If you can not find your current Market Baselines please email cpipkin@vitlpower.com 

Company Earnings

This is a calculation that helps determine how much the company makes before the sales rep is paid.

Company earnings need to help cover costs of gear, access to services, office space, office staff, sales rep pay, hierarchy override payments, paying owners, and all the other things that are needed to run a company.

Net PPW = Net Price Per Watt

System Size = Size of the system in kW

Market Baseline =  The lowest Net PPW your company can sell at for a particular State/Region.  {this is not the level a rep should sell at}

Freedom Split = Freedom takes a 20% cut for their earnings

Freedom Lead Adder = The adder cost of taking leads from Freedom

Site Audit Cost = The cost of the site audit

Network Partner’s are paid on VITL Power’s Baseline. The subdealer is responsible for all adder, appt fee (if applicable) and Site Audit fees. Here is an example of how project pay is calculated, this reflects the 80% revshare that is applied in Freedom Forever’s model. 

Example: 7000 watt system, $4 Net PPW, $1.80 Baseline {this is an example only} 

Step 1: Net PPW -  Market Baseline = Gross Margin

$4.00 Net PPW – $1.80 Market Baseline = $2.20

Step 2: 80% Revshare = Net Margin {note multiply step 1 by 80%}

$2.20 X 80% = $1.76

Step 3: Net Margin X System Size = Net Pay {note multiply step 2 by number of watts}

$1.76 X 7000 Watts = $12,320

Step 4: Net Pay - Site Audit Fee {always $150} and any APPT Fee {note step 3 minus audit fee and appointment fees (if any) }

$12,320 - $150 Site Audit Fee - $0.00 Appointment Fee = $12,170 Total Company Earnings

Sales Rep Pay

The calculation method to pay sales reps will be different at every every organization. 

To start you need to determine the company earnings and then apply a revenue model to pay money earned to the Sales Rep.  

Internal Market Baseline (Zero Line): The minimum Net Price Per Watt that YOUR company sets for the reps to sell in a region.  Each company sets the internal zero line at some price above the market baseline.  The purpose is to have room for errors and for some margin.

A common way to pay reps is to use a Internal Market Baseline model with a revenue split with the sales reps.

• Set a minimum Net PPW that a sales rep can sell a deal at some determined a zero line for each region.  You will want to base this off of the region baseline that freedom has set for your company in each region.  In this scenario the Internal Market Baseline is only a padding to guarantee a small amount of pay and also used as a buffer to make sure the company does not loose money on a deal.

• After this you set a revenue split with the sales rep to share the remaining revenue.  Based on how aggressive your zero line is in each region, you can set that pay to be a 70/30 split share with the sales rep where 70% of the remainder goes to the sales rep.

Another way to do this is to set an Internal Market Baseline with no revenue split.

• The company makes only the amount up to the Internal Market Baseline and the Rep makes the rest.