Sales Terms

Sales Commission

Sales commission is a percentage of the total sale price for an item that goes to the salesperson who sold it

What's Inside

    What is Sales Commission?

    Sales commission is a percentage of the total sale price for an item that goes to the salesperson who sold it.

    It's calculated by taking 100% minus any discounts and then multiplying this amount by one's commission rate.

    Calculation Example

    For example, if you offer a 50% discount on your product that sells for $1000, then commission would be payable on 50% of $1000 ~ $500.

    If you offer a flat commission structure of 10%, sales commission on this sale is 10% of $500, i.e $50