ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -With a straight commission, an employee earns a percentage of every sale made, receiving no other forms of payment.

Detailed explanation-2: -How it works: Also known as a Straight Commission plan, the Commission Only structure refers to paying reps a set commission whenever they make a sale. Reps don’t earn a base salary or have the opportunity to increase their commission percentage. Example: A sales rep earns a 25% commission on every product he sells.

Detailed explanation-3: -Sales commission is a key aspect of sales compensation. It’s the amount of money a salesperson earns based on the number of sales they have made. This is additional money that often complements a standard salary.

Detailed explanation-4: -A commission is a payment that an employee makes based on a sale. Some employees earn commission in addition to their base income, while other employees work only on commission. When an employee earns a commission, they make a portion of the sale in income.