What is Commission?


‘Commission’ has different meanings based on the context. However, concerning sales and HR, ‘Commission’ is defined as a variable pay given for the products sold or the services provided.


Especially in sales, commissions are provided to the salesperson as an incentive to close more deals. It is set to a percentage of the sale in most cases. However, fixed commissions might also be provided in some cases, even though those are very rare in the industry.


Similarly, commissions might also be provided based on achieving a specific sales target within a stipulated time. The commissions are always set in such a manner that the salesperson’s interests align with that of the company. Some industries use the commission model more than others, for example, car sales, real estate, etc.

More HR Terms

Skills Gap

What is Skills Gap?   ‘Skills Gap’ refers to the gaps in the skills expected by the company for a position and the skills the

Workplace Deviance

What is Workplace Deviance?   ‘Workplace Deviance’ is the term used to denote intentional malpractices aimed at disrupting the normal working of a workspace. It

Social Networking

What is Social Networking?   ‘Social Networking’ is the act of forming and maintaining social relationships. It is mostly used to build relationships with like-minded

Contact Us

Contact Us

We use cookies on our website to provide you with the best experience.
Take a look at our ‘privacy policy’