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Commission Payout in sales refers to the payment made to salespeople based on the commissions they have earned from their sales activities. It is the actual disbursement of commission earnings, usually calculated as a percentage of sales revenue or profit, and paid out according to a company's commission plan.
Synonyms: commission payment, sales commission payout, commission disbursement, commission earnings payout
Commission payouts motivate sales teams by directly rewarding their performance. Timely and accurate commission payouts help maintain sales morale and encourage continued effort to meet or exceed sales targets.
Commission payouts are used as part of a sales compensation plan. After sales are recorded and commissions calculated, the payout is processed, often monthly or quarterly, to compensate salespeople for their contributions.
A salesperson who earns a 5% commission on a $10,000 sale would receive a $500 commission payout. Companies may also have tiered commission payouts where higher sales volumes result in higher commission percentages.
