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commission

kuh-MISH-un /kəˈmɪʃn/

nounB2GMATCAT

ProfessionalNeutral

An amount of money, typically a set percentage of the value involved, paid to an agent in a commercial transaction.

Commission is directly proportional to sales or results. It is often the primary form of income for real estate agents and car salespeople.

The story behind the word. From the Latin 'com-' (together) and 'mittere' (to send), 'commission' originally meant a task or authority entrusted to someone. In business, this 'entrustment' evolved into the payment given to the person who successfully carries out the entrusted transaction.

Word relationships

percentage: Percentage is the mathematical term, while commission is the professional term for that pay structure.

Commonly confused with

salary: Salary is guaranteed; commission must be earned through specific transactions.

Word family

commissioned (verb): Past tense of commission; having been given a task.
commissioning (verb): The act of ordering or authorizing something.

Collocations

sales commission
earn a commission
commission-based
straight commission

Idioms & expressions

in commission (in use)
out of commission (broken)

Example sentences

"The agent earned a 3% commission on the sale of the luxury estate." A common real estate arrangement.
"I have a commission from the King to explore these lands." A historical use of the term for a task.

Memory hook

COM-MISSION: You are on a MISSION to sell, and you get COMpensation for it. Mission accomplished, commission earned.

When not to use

Do not use 'commission' for a flat-rate bonus that doesn't change based on the size of the sale.

Fun facts

In the 18th century, military officers had to 'purchase' their commissions to lead troops.
Some sales jobs are 'commission only,' meaning there is no base salary at all.