A sales commission is a percentage of sales revenue paid to a salesperson as compensation for generating business. Commission structures vary widely — flat rate, tiered (higher rate at higher volumes), split (between multiple reps), or residual (recurring on ongoing contracts).
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Pro Tip
Understand your commission structure before joining a sales role. A 6% commission with high quotas can earn less than a 3% commission with achievable targets. Always model realistic scenarios.
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Did You Know?
The term "commission" comes from Latin "commissio" (to entrust). Medieval merchants used commission agents to sell goods in distant markets — a practice that drove global trade before modern corporations.
References
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