In a commission-based payment system, what does an employee receive?

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In a commission-based payment system, an employee receives a percentage of sales they make. This means that their earnings are directly tied to their performance in selling products or services. The more they sell, the higher their compensation, which incentivizes employees to maximize their sales efforts. This system is often used in sales roles where revenue generation is a primary function, allowing employees to be rewarded for their contributions to the company’s profitability. By receiving a percentage of sales, employees are motivated to work harder and achieve better sales results, aligning their interests with the company's success. Other compensation structures, such as a fixed salary or monthly bonuses, do not directly tie earnings to individual performance in the same way that a commission system does.

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