Q:

How is a sales commission calculated?

A:

Quick Answer

A sales commission is calculated using the commission structure agreed upon between the owner or manager of a business and a salesperson. This commission structure is sometimes received as a one-time payment. However, it can also be received as a recurring commission over the life of the sales account.

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How is a sales commission calculated?
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Full Answer

If a salesperson agrees to receive 20 percent of every sale she makes, she would receive $20 off of every $100 sale that she makes. If she sells accounts that make monthly payments, she then receives a recurring commission each and every month that the bill for the sale is paid by the sales account holder.

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