BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -What is Graduated Commission? Graduated commission is a method of compensation for the sales people where the commission earned as a percentage of sales increases incrementally with the increase in the sales volume. Generally used by a business to incentivize the sales force for better performance.

Detailed explanation-2: -Graduated Commission. The graduated commission approach involves setting up “tiers” where past a predetermined threshold of sales, an individual’s commission rate goes up. For example, individuals may earn 10 percent on their first $10, 000 in sales, 20 percent in their next $20, 000, and so forth.

Detailed explanation-3: -A sales commission is a sum of money paid to an employee upon completion of a task, usually selling a certain amount of goods or services. Employers sometimes use sales commissions as incentives to increase worker productivity. A commission may be paid in addition to a salary or instead of a salary.

Detailed explanation-4: -A graduated commission is a system of compensation for sales people where the percentage of sales earned increases as the sales volume increases. Therefore, graduated commission is also one kind of commission.

Detailed explanation-5: -In sales, these incentives often take the form of a commission-an amount that is paid out on top of a regular salary and is based on the percentage of sales that an employee generates. Sales commission rates range from 5% to as much as 50%, but most companies pay between 20-30%.