Commission/Sales

What is Commission/Sales?

Commission is a form of variable compensation paid to employees based on the volume or value of sales they generate. Commission structures vary widely and may include straight commission, where pay is entirely performance-based, or a base-plus-commission model that combines a fixed salary with variable earnings. Commission rates, thresholds, accelerators, and caps are defined in a commission plan or sales compensation agreement. Effective commission structures align seller behaviour with business objectives, reward top performers, and provide sufficient income stability to attract and retain sales talent.