CareerCareer Management

Commission - earnings of active people

Commission is the remuneration of the intermediary (person or firm) to provide services or support transactions / transactions on behalf of another person and at his expense. To the services of intermediaries often resort firms striving to increase their turnover. Therefore, the commission is often calculated as a percentage of the turnover achieved by the intermediary. It can take many forms.

A commission is often applied in a linear form: the higher the turnover or the volume of sales, the greater the amount received by the intermediary. In this form, the payment for work is easily calculated, in parallel, additional forms of encouragement can be applied, but there are disadvantages in it. For example, at a very high level of turnover reached by the intermediary, his earnings may be higher than that of the head of the company-guarantor. Naturally, in this case, the emergence of tension in the relations in the team. In addition, the high earnings of an intermediary may reduce his interest in applying additional efforts to increase turnover / sales.

In the Western countries, a degressive commission is often applied, when the percentage of turnover directed to the remuneration of the intermediary decreases with the increase in sales / turnover. In this case, the correct calculation of interest rate changes is very important, taking into account both the interests of the guarantor company and the performer, otherwise it will not be interested in the growth of turnover / sales.

Commission in a progressive form, when the percentage of the amount of compensation increases with the increase in sales / turnover growth, are often used in the sale of goods or services that are not in high demand. This form effectively stimulates intermediaries, but causes high costs of the company-guarantor.

To force the sale of certain goods or services firms often apply commission in a special form - increased interest on transactions with these goods / services in a certain time period.

An example of specialties in which wages is calculated in the form of a commission is the work of an insurance agent - a person who officially represents an insurance company and prepares documents for personal insurance or property insurance.

This work is suitable for active, energetic people, able and loving to communicate with people. Special education does not require work by an insurance agent , since each insurance company itself prepares its employees of different levels (initial, with the insurer's experience of work , group managers). For the work of an insurance agent, such components of activity as professional ethics, service culture, knowledge of the rules and conditions of all types of insurance provided by the company, the ability to maintain documentation on accounting for their activities and reporting on it are important.

It is the responsibility of the insurance agent to advise clients on all types of services provided by the employer company, to help choose a particular product in accordance with the needs of the consumer.

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