Anonymous
Anonymous asked in Business & FinanceCareers & Employment · 1 decade ago

what exactly is the meaning of commission basis?

okay, this might sounds silly, but can somebody use brief, understandable English define the term commission basis?

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  • 1 decade ago
    Favorite Answer

    Commission Basis can refer to either a flat percentage of sales (i.e. you get $1 for every $10 you sell) OR it can mean that you earn $1 for every 10 'widgets' that you sell OR it can mean that you earn $100 if you sell at least 100 'widgets' this month, $200 if you sell at least 200 'widgets' this month, and $250 if you sell more than 250 'widgets' this month. Any of the above can be defined as commission based compensation.

    Your "Commission Basis" then, is the amount or number of sales on which your employer measures you and compensates you.

  • 3 years ago

    Definition Of Commission

  • 4 years ago

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    Commissions are handled differently at every business. Full commission generally means that you are paid a percentage of the sale, adn there is no base. In some cases, there is a draw against commission. That means that they pay you something up front, and then you pay them back on your commission. For example: STRAIGHT COMMISSION Your weekly draw is $350 You sell $3500 in shoes at 10% commission= $350 You covered your draw for the week. If you sold $7000 in shoes @ 10% commission = $700 You then get your $350 draw and $350 in commission If you sold $1000 in shoes at 10% commission = $100 You are then "in the hole" for $250 to the company and must make it up the next week. If you fall really far behind, the company will let you go as it becomes really hard to dig out of if the amount you owe get's too big. BASE + COMMISSION If you have a guaranteed base, it means the company is going to pay you for your daily work. It generally means you will have some kind of responsibility beyond selling (think stocking, cleaning, sorting merchandise, etc.) Base + means that if you don't generate your sales quota on a regular basis you'll get put on notice, and then fired.

  • Anonymous
    4 years ago

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    RE:

    what exactly is the meaning of commission basis?

    okay, this might sounds silly, but can somebody use brief, understandable English define the term commission basis?

    Source(s): meaning commission basis: https://shortly.im/kC5XB
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  • Hirsch
    Lv 4
    4 years ago

    meaning commission basis

  • Anonymous
    1 decade ago

    yup..its like..if u r selling stuff to ppl...lets say knives...if u sell 3 knives and made 100 bucks..u get a commision out of it..which is like 10% or 5%..so ull get 10 or 5 bucks out of it..and tht wud be ur salary..

    like..ur salary is based on the profit ull make for the company.. ull take a % out of it

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