Straight commission

One of the methods of compensating the sales persons where income of the salesperson is limited to a percentage commission on each sale the sales people generate. The commission could be the same percentage on all merchandize or it could vary depending on the profitability of the item. This plan provides substantial incentive for salespeople to generate sales. But when the general business climate is poor, salespeople may not be able to generate enough income to meet their basic needs. The commission may range between 2 to 10 percent of the selling price.