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How to calculate Sales commission

The Sales commission formula, with plain worked examples you can check yourself.

Sales commission = R × c

Worked examples

R = 40000 · c = 3%Sales commission = 1,200
R = 35000 · c = 3%Sales commission = 1,050
R = 40000 · c = 8%Sales commission = 3,200

How to use it

  1. Write down the values for each letter in the formula.
  2. Do the brackets first, then divide or multiply.
  3. Check the units before you compare results.
  4. Compare the answer with last period or with a competitor to see if it is good or bad.

This formula belongs to Positioning & Pricing.

Related terms

CommissionValue propositionMarket segmentationPenetration pricingPrice skimmingCompetitive pricing

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