Ads Board - Free Advertising and Marketing

Full Version: sales commission
You're currently viewing a stripped down version of our content. View the full version with proper formatting.
The payment of commission as remuneration for services rendered or products sold is a common way to reward sales people. Payments often are calculated on the basis of a percentage of the goods sold, a way for firms to solve the principal–agent problem by attempting to realign employees’ interests with those of the firm. One of the most common means of attempting to align principal and agent interests is to design a contract with incentives that track agent performance. The principal–agent theory provides an explanation for the dissimilarities across the marketing firms in the types of compensation plans used by them, such as fixed salary, commission or a combination of both fixed and sales commissions. Although many types of commission systems exist, a common form is known as on-target earnings in which commission rates are based on the achievement of specific targets that have been agreed upon between management and the salesperson. Commissions are intended to create a strong incentive for employees to invest maximum effort into their work. Often, a firm embracing a commission structure may not involve employees, but may solely establish themselves using independent contractors. An example in the US could be a real estate agent. Commission is not offered at most entities that receive donations or gifts. This is both laughable and likely against the will of most donors. However, it is commonly argued that this would increase motivation and efficiency of those requesting donations. Reward in the form of commission alone with no pay or salary is in the US known as straight commission. Reward may also take the form of commission plus a salary. Industries where commission is commonly paid include car sales, property sales, insurance broking, and many other sales jobs. 33521
http://www.fast2earn.com/