Commission Plan for Dummies

Sure, no problem! So, let me explain to you what exactly a "Commission Plan" means. Imagine for a moment that you're a professional basketball player, and every time you shoot and score a basket during a game, you earn points for your team. Now, think about if your coach said that you'll not only earn points for your team, but you'll also earn some extra money for every basket you make. That extra money, my dear student, is what we call a commission.

Now, a "Commission Plan" is like a set of rules or a special agreement between a company and its employees. It's a way to motivate and reward these employees for the sales they make or the services they provide. So, if you have a job where you sell things, like a salesperson at a store, a commission plan could mean that you'll receive a little extra money for every sale you make.

But hold on, my student, because commission plans can work in different ways. For example, in some commission plans, the more you sell, the more money you earn. It's like a ladder, where the higher you climb, the more money you make. In other commission plans, you might earn a percentage of the sales you make. So, the more you sell, the higher the percentage and, in turn, the more money you make.

Furthermore, commission plans can be found in various jobs and industries. For instance, if you become a real estate agent in the future, you might have a commission plan which means that you'll earn a certain percentage of the selling price of a house every time you help someone buy or sell a property. Or if you work as a car salesperson, a commission plan could mean that you receive a certain amount of money for every car you sell.

So, in summary, a "Commission Plan" is like a special agreement between a company and its employees. It's a system where employees can earn extra money, usually based on the number of sales they make or the services they provide. It can work in different ways, such as increasing the amount of money you earn as you sell more or earning a percentage of the sales you make. And remember, this type of plan can be found in various jobs and fields, rewarding employees for their hard work and achievements.