Relating to or based on a commission, especially a payment or fee given to a person or company for services rendered, typically a percentage of the value of goods sold or transactions completed. It often implies a performance-based reward structure, incentivizing individuals to achieve specific targets or objectives. This term highlights the entrepreneurial aspect of certain professions and industries, where earnings are directly tied to the volume of work or sales generated. The commission structure can vary significantly depending on the industry and the nature of the service provided, ranging from a small percentage to a significant portion of the total value.
Commissional meaning with examples
- The real estate agent’s income was purely commissional; her earnings fluctuated wildly depending on the number of properties she sold each month. She relied on her sales acumen. Success meant closing deals and generating high value; this made her motivated to perform well. She needed an incentive to maximize sales as she was only paid when successful, creating a very unique job environment.
- The salesperson worked on a commissional basis, earning a percentage of every product sold. This meant that his income would depend upon the quantity of the goods he could market. To maximize his earnings, he had to find new customers and persuade clients to choose the products of his company, which often required working long hours and constant networking to close deals.
- The freelance writer accepted a commissional contract for articles and blog posts. Her payment reflected how well she completed the work she was assigned, or the work she could generate. The project's nature was a significant incentive, therefore, her motivation had to remain high. Deadlines were a large factor in how her pay was structured, and the client provided these regularly.
- The financial advisor's salary consisted of both a base salary and a commissional component, encouraging high revenue. This structure rewarded performance with bigger paychecks. It was important to maintain client relationships, ensuring both a continuous stream of referrals and successful sales; as this would generate consistent income. This ensured their clients trust was maintained.
- The marketing agency used a commissional pricing model for its digital advertising services. The agency's income depended on how many clicks or conversions the advertisements could achieve. The agency's work needed to generate interest. This ensured the client saw value, so both the client and agency were incentivized to improve campaigns. Its a strong example of a performance based commission.