Percentage of Sale

The simplest commission structure where the salesperson earns a fixed percentage of the sale amount.

Formula:

Commission = Sale Amount × (Rate / 100)

Best for: Simple sales environments with consistent products/services.

Tiered Commission

Different commission rates apply to different portions (tiers) of the sale amount.

Example:

• First $5,000 at 3%
• Next $5,000 at 5%
• Amounts above $10,000 at 7%

Best for: Encouraging salespeople to achieve higher sales volumes.

Fixed + Percentage

A fixed amount plus a percentage of the sale amount, optionally with a maximum cap.

Formula:

Commission = Fixed Amount + (Sale Amount × Rate / 100)

Best for: Situations where you want to guarantee some income while still incentivizing larger sales.