A commission is a fee paid to a salesperson or agent as compensation for their role in facilitating a transaction. When a salesperson sells a product or service, they may receive a commission as a percentage of the sale price. This incentivizes the salesperson to work harder to sell more products, as their earnings are directly tied to their performance. Commissions are common in industries such as real estate, insurance, and finance, where agents and brokers are compensated based on the value of the transactions they facilitate. Commissions can be a significant source of income for those in sales roles and can provide a variable, performance-based incentive for employees to achieve their sales targets.
What is a ‘Commission’?
