What is Commission Pay?

Taimour Azizuddin

According to the U.S. Department of Labor, “a sales commission is a sum of money paid to an employee upon completion of a task, usually selling a certain amount of goods or services.” Commission pay is common in the sales profession, and in industries ranging from real estate to insurance. Commissions are often paid as a percentage of the amount of a sale. In a simple example, if a real estate agent sells a $100,000 house with a 5% commission, they earn $5,000. 

Commissions allow employers to reward higher performance, and can often allow employees to earn sums far in excess of their base salaries. In this sense, they are often a win-win situation for the employer and the employee; when the company profits, so does the employee. Sales commission plans can often become complex, however, and having all parties understand plans in detail is essential to a positive outcome.

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Automate calculations

Automate sales commission payments. Create commission rules, define a payout schedule and access monthly statements for each sales rep.

Motivate and coach with real time dashboards

Motivate sales professionals with real-time visibility into commissions. Coach your team, align everybody with company goals and drive long term sales performance.

Compare, simulate and design commission plans

Roll out new commission plans with ease. Compare plans and simulate new rules with a single click.

No more errors

Palette keeps history logs and tracks every calculation detail, helping you to reduce sales commission errors.

Reconcile revenue with CRM data

With Palette you can reconcile invoices and payments with CRM data and pay commissions to your reps only when the money is in the bank.

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Incentivize your teams on short term goals. Create a challenge targeting any KPI you want to uplift, drive better results and boost your company’s culture.