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Sales Commission

oboloo Glossary

Sales Commission

Sales commission is a reward given to employees for successfully achieving their goals, typically in the form of money. This can take the form of a flat rate, percentage of sales revenue earned, or an incentive structure based on milestones and performance levels. Commission incentives encourage and motivate employees to strive for higher sales, which can benefit all parties involved. Commission structures vary across different businesses, but generally tend to provide an incentive for employees to reach or exceed target sales numbers, reap the rewards and then start all over again. Ultimately, this creates a win-win situation—employees earn more money, while companies can grow their customer base and increase their profits.

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