ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The industry usually sees, that the basic sales commission rates are not less than 5% for the reps with a good salary. The average commission rate hovers between 20%-30%. Some companies offer a handsome rate ranging from 40%-50% to high-performing reps who aren’t taking a salary home.

Detailed explanation-2: -The average commission rate for sales sits somewhere between 20% and 30% of gross margins, but this depends on the sales structure. Some workers may earn their whole salary through 100% commission, while others earn 10% on top of a base salary.

Detailed explanation-3: -To calculate the payable commission, multiply the sales revenue by the sales commission rate. A 10 percent commission rate on a $10, 000 product deal would pay $1, 000 in commission.

Detailed explanation-4: -Just take the sale price, multiply it by the commission percentage, and divide it by 100. An example calculation: a blue widget is sold for $70 . The salesperson works on a commission-he/she gets 14% out of every transaction, which amounts to $9.80 .

Detailed explanation-5: -A commission, in its simplest form, is some percentage of revenue. For example, a salesperson may earn 3% of whatever they sell. If a product is sold for $100, the salesperson would earn $3 from that sale.