Commission - GCSE Business Definition

Reviewed by: Lisa Eades

Last updated

Commission is a form of compensation typically offered to salespersons, where they earn a percentage of the sales they generate in addition to their regular salary.

In the context of GCSE Business studies, commission acts as an incentive for employees to increase their sales performance, as their earnings are directly tied to the volume of goods or services they sell. This type of payment is particularly common in sectors such as property sales, retail, and finance. Understanding commission is essential for students as it highlights how businesses can motivate their workforce through financial means.

Need help reaching your target grade? Explore our notes, questions by topic and worked solutions, tailor-made for GCSE Business.

Explore GCSE Business

Share this article

Lisa Eades

Reviewer: Lisa Eades

Expertise: Business Content Creator

Lisa has taught A Level, GCSE, BTEC and IBDP Business for over 20 years and is a senior Examiner for Edexcel. Lisa has been a successful Head of Department in Kent and has offered private Business tuition to students across the UK. Lisa loves to create imaginative and accessible resources which engage learners and build their passion for the subject.

The examiner written revision resources that improve your grades 2x.

Join now