Commission Structures

Commission structures are payment methods used to incentivize salespeople or agents to perform better by offering them a percentage of the sales they generate. For example, if a salesperson sells a product for $100 and earns a 10% commission, they would receive $10. There are various types, including straight commission (only earning from sales), base salary plus commission, and tiered structures where commission rates increase with higher sales volumes. This system motivates employees to maximize their sales efforts, aligning their earnings with the company’s success.