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Commission is a form of payment that is typically given to salespeople or agents as a percentage of the total sales or revenue they generate for a company.
Commission is calculated by multiplying the agreed upon percentage by the total sales or revenue generated. For example, if a salesperson has a commission rate of 10% and they generate $10,000 in sales, their commission would be $1,000.
The two main types of commission are fixed commission, where the commission rate is predetermined and remains the same, and variable commission, where the commission rate can change based on certain factors such as sales performance or reaching sales targets.
No, commission and bonuses are different forms of compensation. Commission is based on individual sales performance, while bonuses are typically given as a reward for achieving certain goals or targets set by the company.
No, not all jobs offer commission as a form of compensation. Typically, sales-based roles such as sales representatives, real estate agents, and financial advisors are the most common positions that offer commission as part of their salary package.