How common is it for sales people to receive commission based on the profit from their sales, rather than the total sales number?

My answer to How common is it for sales people to receive commission based on the profit from their sales, rather t…

Answer by Jeannette Marshall:

It is not uncommon for the to be sliding scale depending upon the profitability of the sales. 

“Cost of sales” varies from company to company and is not just the commission paid out to the sales rep.  Cost of sales can include upfront costs to get a sale – car allowance, expenses for entertainment,  marketing tools, etc. 

Whenever this topic comes up on a prospective sales opportunity, one should be asking what “tools” will be provided.  Car allowances and entertainment expenses can be offset by higher commission percentage, that the sales rep can write off on their own taxes.

How common is it for sales people to receive commission based on the profit from their sales, rather than the total sales number?

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Published by YUPPYdom

A writer, a blogger, a seeker, a finder; discovering nuances that are unique to those born between 1960 and 1965 .... I write about what appeals to Yuppies who are 50 plus and wanting to be the best of anything and everything! I provide insights and build camaraderie among YUPPIES of the 1980s, an impactful demographic born in the 60s, went into Junior High | Middle School in the mid 70s and graduated from High School 1979, followed by the roller coasters in the 1980s. Regardless of location, religion, gender &or identity, age, culture, beliefs, education or economic standing. Everyone is famous in their own world:: having the starring role.

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