A commission-based compensation system provides employees with a percentage-based payout in addition to their base income. This additional payout is often based on the amount of sales made, transactions closed, or a specific performance measure reached.
Example
A sales person receives a 5% commission on every product sold. If they sell $10,000 worth of items in a month, they will earn an extra $500 in commission on top of their usual income. This performance-based reward encourages staff to increase their sales efforts.
