Commission

Definition

Commission is a financial charge or a percentage of a transaction's value, paid to an individual (partner, reseller, etc.) for facilitating a transaction or performing a specific service, often in sales.

The commission, a pivotal element of any compensation plan, can be structured in one ways:

• Percentage-Based Commission: This model allocates a certain percentage of the sales as a commission. For example, a 50% commission rate means half of the sales revenue is paid as commission.