Luxury Lexicon A definition

Sales commission

Sales commission is variable pay earned on sales under the terms of an employer’s pay scheme.

A shop may pay a basic salary and add commission when a sale qualifies. A simple plan might pay a percentage of the selling price. A fixed payment for each qualifying sale is another possible arrangement. A sales target tells the salesperson what the shop aims to sell. The commission plan explains which sales count towards pay and how the amount is calculated. Ask whether the figure in an advertisement is basic pay, an illustration of possible earnings or a guaranteed amount.

In job listings

Watchfinder’s London sales advisor posting offered a salary and referred separately to a commission structure. The wording tells a candidate that part of the package can depend on sales, and the rate and payment arrangements are worth asking about. Search local jobs for “sales advisor”.

References

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