# What is draw vs commission

### Situation: Our commissions are growing way faster than revenues

Let’s say you are looking revenues & sales commissions of your company for last few years. The data looks like this:

And you want to highlight the fact that commissions are growing faster than revenues.

So you plot YoY growth rates for revenues & commissions.

### Problem: The chart of YoY growth rates is not convincing

Take a look at the chart. It doesn’t convey the message that we want. At best it says “revenue growth is less than commission growth”

How to convey the message * “Commission growth is a problem for us”* ?

### Option 1. Use indexed charts

When comparing 2 sets of values (that are in different order of magnitudes) over time, we can **use indexed charts** . They can tell the story of how the values have changed over time clearly.

Here is the indexed chart for our data:

**How to create this chart?**

- Calculate index values. Assume first year value for each series as 100 (so revenues = 100, commissions=100 in year 2010)
- For next year, calculate the value as this year value / first year value
- Plot
these indexed values on a line chart

- Adjust the line chart axis minimum to 1 (or 100%)
*if all values are >1* - You are done

### Option 2. Visualize ‘for every % in revenue growth, commission grows by…”

We can calculate what is the change in commission growth rate for every % growth in revenues & plot this. This will depict the situation in a powerful & dramatic fashion, like this:

**How to create this chart?**

- Calculate % values by dividing YoY commission growth with YoY revenue growth
- Plot this as a column chart
- Draw a line at 100%
- Add a text box at this line and write “Ideal” on it.
- You are done.

### Download Revenue vs. Commission growth charts

**Click here to download the example workbook** . Examine the formulas & chart settings to learn better.

### How would you present this information?

My favorite approach is to use indexed charts. They are designed for this exact purpose.

**What about you?** How would you visualize this kind of information? What charting techniques will you use to get your message across? Please share your inputs in the comments section.

Source: m.chandoo.org

Category: Forex

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