What is commission?
A commission is a fee or incentive paid to an agent or employee for taking care of a piece of business. For example, a salesperson may earn a commission on the products they sell. Commissions are typically paid as a percentage of the total value of the sale.
There are many different types of commissions, each with its own set of rules and regulations. For example, real estate agents typically earn a commission on the sale of a property, while stockbrokers earn a commission on the sale of stocks.
Commissions can be a valuable tool for both businesses and employees. For businesses, commissions can help to motivate employees to sell more products or services. For employees, commissions can provide a way to earn additional income based on their performance.
What is commission pay?
Commission pay is a type of sales compensation that is paid to an employee based on the amount of sales they generate. This type of pay is common in sales-driven industries, such as real estate, insurance, and software-as-a-service (SaaS) tech companies.
Commission pay acts as a great way to incentivize employees to sell more, but it is important to set clear expectations and track performance closely.