Handling Host-Level Commission in Tern
One common question that comes up when working with host agencies is whether Tern can split commission twice, first from the supplier to the host, and then from the host to the agency, and finally from an agency to the advisor.
For example:
The supplier pays $1,000 in commission to the host
The host pays 90% ($900) to the agency
The agency then pays 90% of that ($810) to the advisor
Can Tern support multiple commission splits like this?
Right now, Tern does not support multiple commission splits at different levels automatically. Tern applies each advisor’s split to the commission amount that is entered into the system - which is usually the amount the supplier pays.
Recommended: Enter the full supplier commission, and apply advisor splits to the agency share
In most cases, we recommend entering the full commission amount paid by the supplier to the host, even if your agency doesn’t receive the full amount.
So in the example above, you would enter $1,000 as the expected commission, even though the agency will only receive $900 from the host.
The agency owner will then enter the amount received from the host when reconciling commission. Tern will then apply the advisor’s commission split to the amount the agency received. So if the advisor is set to receive 90%, Tern would calculate 90% of $900 = $810.
Advisor Booking View
Agency Owner Admin View
This method keeps reporting clear and consistent, and avoids manual errors when reconciling advisor payouts.
What about reporting?
The one tradeoff here is that your expected commission reports in Tern will overstate total commission by the host’s cut. Because what’s being reported is the full commission earned on the booking, not just the share your agency receives.
Most agencies are comfortable with this, and simply reconcile the actual payout during commission tracking and payment.
Summary
Advisor enters the full commission expected amount paid by the supplier to the host
Tern will apply advisor splits to the amount received by the agency
Do not lower advisor splits to account for the host cut since this can lead to underpayment
Expected commission reports may slightly overstate total earnings, but will remain directionally accurate
Still have questions? Reach out and we’re happy to walk through specific examples with you.