Sales commission

Sales commission – the role of the commission is usually to motivate sellers or salesmen (who usually do not sell for themselves but for another person) to sell more. It is usually calculated as a percentage of the income acquired via sales. Therefore if the salesman sell more (i.e. if their sales force is bigger), their sales commission will be bigger too. Some employers prefer to pay a sales commission instead of fixed salary. The risk for the seller is that if for some reason there are not enough sales, respectively their award will be less.

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