What is a commission?
Commission refers to the (usually percentage) share of an order value that a sales employee receives for a successful deal. The purpose of a commission payment is to ensure that the respective employees participate directly in the success and can also determine a large part of their salary themselves. For salaried employees, a commission share of 30-40% of the target salary is often common. Commission also has a motivating factor that encourages employees to take on more responsibility for the success of the company.
Commissions can be paid per order or in the form of bonuses at the end of a working year.
Further reference:
https://de.wikipedia.org/wiki/Provision
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