Concept in Definition ABC

The commission is the amount that is received for completing a transaction commercial and that will correspond to a certain percentage on 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 It links it 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 giving will positively impact their income.

As we mentioned, in most cases, the commission consists of a fixed percentage applied to the sale price. carried out, although in any case other conditions may be established in relation to the product line in question, the channel of distribution or the category that present the client captured.

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 break down like this: 1% (customer opening), 1% (price negotiation), 1% (follow-up commercial). 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 customer's opening, but will no longer receive the remaining 2%.

In the Commerce Of the retail type, the practice of the commission to incentivize the sales group is also common, although in this case the modality What predominates is that the entire group shares the commission so that there is no explicit and stark fight between sellers for her.

On the other hand, the term commission is used to refer to the order and capacity that one person grants to another so that on their behalf they can carry out an assignment or participate in a certain activity.

And another recurring use of the word is that of set of people who are in charge of solving some matter or question. The commission of economy Y finance of the Chamber of Deputies will be in charge of deciding whether the president of the central bank incurred in poor performance of their duties.