Commission

Definition

A fee paid to someone, often a salesperson, based on the value of what they sell. It’s a way to reward performance.

Angela works as a real estate agent and earns a percentage of each home sale. Her motivation skyrockets when closing multiple deals in a busy season, significantly boosting her monthly income.
Hired as a sales rep, Noah knows a portion of his earnings will be commission-based. He sets personal performance goals to maximize these rewards and grows his client list by networking.
Sasha negotiates a higher commission rate after proving her sales results exceed company targets. This change directly influences her paycheck, encouraging her to maintain strong performance.