What is the term for a percentage payment on a sale made to the salesperson?

What is the term for a percentage payment on a sale made to the salesperson?

• A. Bonus
• B. Delegation
• C. Subordinates
• D. Commission

Answer: (D)

Think about how a salesperson earns money from each sale they make. The payment is called commission. It’s a percentage of the sale value that the salesperson receives for every transaction, so their earnings rise as they close more or bigger sales. This setup directly links pay to performance, which strongly motivates sales activity and revenue generation. Commissions can be a straightforward percentage, can increase with higher sales (tiered), or be paired with a base salary. This is different from a bonus, which is typically an extra payment tied to meeting targets over a period rather than a share of every sale. The other terms relate to different ideas entirely—delegation is giving authority, and subordinates are people who report to someone.

Think about how a salesperson earns money from each sale they make. The payment is called commission. It’s a percentage of the sale value that the salesperson receives for every transaction, so their earnings rise as they close more or bigger sales. This setup directly links pay to performance, which strongly motivates sales activity and revenue generation. Commissions can be a straightforward percentage, can increase with higher sales (tiered), or be paired with a base salary. This is different from a bonus, which is typically an extra payment tied to meeting targets over a period rather than a share of every sale. The other terms relate to different ideas entirely—delegation is giving authority, and subordinates are people who report to someone.