Glossary
Commission
Non-guaranteed earnings in addition to base salary.
Commission is the incentive for sales reps caring about your business as if it’s their own. Commission consists of the following factors:
How commissions are earned — e.g. when a sale is made to a new customer; once a new customer pays for product; once a customer is invoiced
When commissions are paid — e.g. commission is paid monthly, on the 10th day of the month following the commission period
How commissions are calculated — e.g. a 10% commission on invoiced amount; 10% commission on gross profit
Additional commission terms — when applicable, such as rollover clauses or commission adjustments
Every sales organization must have a fair commission plan that incentivizes reps.
How commissions are earned — e.g. when a sale is made to a new customer; once a new customer pays for product; once a customer is invoiced
When commissions are paid — e.g. commission is paid monthly, on the 10th day of the month following the commission period
How commissions are calculated — e.g. a 10% commission on invoiced amount; 10% commission on gross profit
Additional commission terms — when applicable, such as rollover clauses or commission adjustments
Every sales organization must have a fair commission plan that incentivizes reps.