Commission-based Sales

Commission-based sales is a compensation structure where salespeople earn a percentage of the sales they make, rather than a fixed salary. This means their income directly depends on their performance; the more they sell, the more they earn. This model incentivizes salespeople to work harder and close more deals, as their efforts result in higher pay. While it can lead to substantial earnings for successful salespeople, it also carries the risk of unstable income, especially in fluctuating markets or slow sales periods. Overall, it aligns the interests of the salesperson with the company's revenue goals.