Commission Rate

A commission rate is a percentage of a sale or transaction that a salesperson or agent earns as payment for their services. For example, if a real estate agent sells a house for $300,000 with a 5% commission rate, they would receive $15,000. This rate incentivizes the agent to sell more, as their earnings are directly linked to their performance. Commission rates can vary widely depending on the industry, the nature of the services provided, and the agreement between the agent and their employer or client.