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Finance: What is commission? 112 Views

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Description:

What is commission? Commission is incentive based compensation earned by facilitators based on a percentage of the dollar value of the transaction(s) they close. Real estate brokers, sales agents, entertainment industry managers, marketing reps, stockbrokers, and consultants are all professions that earn their money through performance based commissions instead of contractual salary.

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Transcript

00:00
finance a la shmoop. what is commission? well it's the greatest motivator for
00:08
salespeople in the world. it's the money some people make above and beyond their [ commission explained on a large screen]
00:13
salary. a little monetary carrot dangling out in front of a salesperson to you
00:18
know encourage them to sell sell sell. alright you're an agent who just sold a
00:22
house good for you. you get a 3% Commission. the house went for a million

00:27
bucks well you get 30 grand for the privilege or at least your brokerage
00:30
does, and then you get some piece of that. ok now you're the stock broker who sold
00:34
3 million shares of stock. well good for you
00:37
you get four cents a share in Commission 120 grand in the pocket of your
00:41
brokerage and you get some piece of that Commission. you're the Hollywood agent[equation]
00:45
who just inked Brad pitiful into a movie deal worth 20 million bucks, well good
00:49
for you your agency gets a 10% commission or two
00:53
million dollars. yeah that's for a Dewey Cheatham and Howe agency best one in
00:57
Hollywood. yeah they rep Harvey Weinstein. now for someone who's attempting to sell
01:02
a polished version of that Harvey Weinstein story well that's a commission
01:07
impossible. [man frowns]
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