Sales commission is the amount of money a salesperson earns based on the deals they close or revenue they generate. Sales commissions are one of the most important aspects of sales compensation. They are generally dependent on performance, and are often paid to salespeople in addition to their base salaries.
Commissions are usually calculated as a percentage of sale volume, gross margin, revenue, profit, or other variable. Of these, revenue is the most frequently used. Every company has its own sales commission structure, and leverages commissions to achieve different goals. Some companies use commissions to motivate their sales force, while others to encourage certain sales behaviors, and others still to drive the sale of specific products over others.
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Learn more...A sales commission rate is a percentage of the total sale value that a salesperson earns for the deals they close. Salespeople within the sa...
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