commission structure
Sales compensation plan
A commission structure is the system by which salespeople, agents, or brokers are paid based on their performance.
It defines how commissions are calculated—whether as a flat percentage, tiered rates that increase with volume, or splits between parties: The real estate brokerage changed its commission structure to attract new agents.
Companies design commission structures to incentivize specific behaviors, balancing motivation against profitability.
- flat-rateSingle unchanging charge
- sales teamsStaff selling company offerings
- tieredHaving multiple levels
- sliding scalePricing adjusted by ability
- bonusesAdded compensation beyond wages
real estate agents · override · base rate · spiff · incentive programs · rake · hybrid · draw · profit-sharing · residual · clawback · insurance brokers · door-to-door sales · performance metrics · revenue sharing · freelancers · profit margins · recruiters
- Sales Compensationbase salary, base pay, bonus, sales bonus, incentive pay
- incentive paycash bonus, performance bonus, merit bonus, incentive plan, profit-sharing
- wageswage, salary, pay, paycheck, income
- profit sharingprofit sharing, profit-sharing, shared profits, revenue sharing, bonus
commission structurebase salary
Guaranteed regular compensation
hourly wage · flat rate · stipend · per diem · retainer