Commission Fee

A commission fee is a payment made to an individual or entity for facilitating a transaction or service, typically calculated as a percentage of the total sale or value involved. For example, a real estate agent earning a commission when helping sell a house or a broker earning a fee for buying or selling stocks. This fee aligns the agent's or broker's earnings with the success of the transaction, incentivizing them to work diligently to achieve the best possible outcome for their client.