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What is a Sales Commission?

What is a Sales Commission?

A sales commission is the amount of money that is gained by a salesperson based on the amount of sales they have achieved. A sales commission could be a flat amount per sale or a percentage of total sales for a period of time. It’s common for a salesperson to receive a sales commission in addition to their yearly base salary.

Example:

If a salesperson was to receive a 10% sales commission quarterly, and was responsible for $50,000 in sales; they would receive a $5,000 sales commission for that quarter.

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