Commission (remuneration)

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For other uses, see Commission.

The payment of commission as remuneration for a services rendered or products sold is a common way to reward sales people. Payments often will be calculated on the basis of a percentage of the goods sold.

Offering monetary compensation in the form of commission alone, or commission in addition to salary rather than simply a fixed salary is intended to create an environment in which employees have a strong incentive to invest maximum effort into their work. Salespeople with very high volumes in real estate, car dealerships, and other businesses can earn lucrative amounts of money.

Common industries where commission is used include car sales, property sales, insurance broking and many other sales jobs.

Controversially, many charity collectors now work on a commission basis.