Commission Structure

A commission structure is a plan that explains how salespeople earn money based on their sales performance. Typically, they receive a percentage of the sales they generate, meaning the more they sell, the more they earn. The structure can specify different rates for different products, set target sales goals with increased commissions once reached, or include bonuses for exceeding targets. It aligns the salesperson’s incentives with company goals, motivating them to sell more. Overall, it’s a clear system that links compensation directly to sales success.