What type of commission is when a sales is paid a percentage of sales only?Responses
Question
What type of commission is when a sales is paid a percentage of sales only?
Responses
Solution
The type of commission where a salesperson is paid a percentage of the sales they generate is known as a "straight commission." In this compensation structure, the salesperson earns income solely based on the revenue they bring in, rather than receiving a base salary or any fixed pay. Straight commission incentivizes sales personnel to maximize their sales volume as their earnings directly correlate to their performance. This model is common in industries where sales volume can significantly impact income, such as real estate, automotive sales, and various retail sectors. It can motivate salespeople to work harder, as their financial rewards depend entirely on their sales efforts.
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