The commission is that amount that is received for completing a commercial transaction and that will correspond to a certain percentage of the total amount of the commercial operation.
In companies, it turns out to be a common practice to pay their sales managers a fixed amount previously agreed in the contract that binds them to the company and then another variable amount that will correspond to the commission for the sale or sales made during the period of the month, for example.
The reason for this type of practice is to encourage salespeople to increase the company's sales month after month, because such a question of being given will positively impact their income.
As we mentioned, in most cases, the commission consists of a fixed percentage applied to the price of the sale made, although in any case other conditions may be established in relation to the product line in question, the channel of distribution or the category presented by the captured client.
The percentage that makes up a commission is generally broken down according to the sales activity that has been carried out, while a 3% commission would be broken down in this way: 1% (customer opening), 1% (negotiation of prices), 1% (commercial monitoring). In this particular case, it may happen that in the future the client is managed in a higher instance and then it will no longer need to be visited by the seller, a fact that will cause the seller to continue charging the 1% corresponding to the opening of the client, but already you will not receive the remaining 2%.
In retail-type commerce, the practice of commission to incentivize the sales group is also common, although in this case the predominant modality is for the entire group to share the commission so that there is no explicit and stark fight between sellers for she.
On the other hand, the term commission is used to refer to the order and capacity that one person grants to another to carry out an assignment or participate in a certain activity on their behalf.
And another recurring use of the word is that of set of people who are in charge of solving some matter or question. The economy and finance commission of the Chamber of Deputies will be in charge of deciding whether in fact the president of the Central Bank incurred in poor performance of his duties.
