Commission (remuneration) Totally Explained

Everything about Commission Remuneration totally explained

The payment of commission as remuneration for services rendered or products sold is a common way to reward sales people. Payments often will be calculated on the basis of a percentage of the goods sold.
   Offering monetary compensation in the form of commission alone, or commission in addition to salary rather than simply a fixed salary, is intended to create a strong incentive for employees to invest maximum effort into their work. Common industries where commission is used include car sales, property sales, insurance broking and many other sales jobs. Contrary to the common erroneous belief, with the few exceptions of salespeople with very high volumes in real estate, car dealerships, and other businesses earning lucrative amounts of money, most don't earn much. In fact, according to surveys done in the early 2000's on the commission-only salespeople in the United States, only 8% of them are able to earn an annual income of $ 50,000 or greater, the vast majority, over 50%, only have an annual income of $ 10,000 or less.
Charity Collector Commission
   Controversially, many charity collectors now work on a commission basis. This concerns many who donate to charities or would like to, but want to be certain 100% of their benevolent donation reaches the worthy cause intact.
   However, this concern only relates to charity collection by cash donation. Banking arrangements on paper where no cash exchanges hands are a direct contract between two distinct parties: the donor, and the charity whose bank account receives the donation direct. It is entirely impossible to intercept any part of a standing order or direct debit arranged between the charity and the donor who is making the donation.
   In the UK for all registered charities who are registered with the audited and government-run UK Charities Commission, these commission monies to salespeople or collectors can only be an accounted-for part of the allocated fundraising budget. The commission structure is occasionally used if considered by the Trustees and Board of an NGO or charity to constitute a demonstrable, valid expenditure: that is, if it can be demonstrated to the Trustee's satisfaction that commission paying brings in higher revenue therefore more money for the charity's cause.
   It must be noted that ongoing commission payments from the same ongoing donation, is also illegal under UK law. In addition, where standing orders or Direct Debit arrangements have been made, these are an agreement between charity's bank account and donor's bank account, which is a closed circuit.
   Moreover, the UK tax system recognises charitable giving and for UK-registered taxpayers, the charity is entitled to claim from the government the tax that has already been paid in the earning of that donated money. If someone is donating £10 to a registered charity, and is a registered taxpayer, then they've had to earn £12.50 and pay tax of £2.50 to possess this £10. When such a donor gives £10 on an ongoing basis direct to the charity without cash exchanging hands, this previously taxed money is claimed back from the UK government, bringing the £10 donation back up to £12.50 every time. As such, it's the norm among charities and NGOs to allocate from this budget, any salesperson or collector incentives designed to further the fundraising aims and ultimate funding of benevolent goals by the charity.
   All registered UK charities are legally required to list costs, full accounts, including the portion for fundraising costs, freely available to the public. Anything less would theoretically constitute embezzlement, if it were not fully accounted for as a fundraising cost within the charity's fundraising budget. Therefore commission incentives as part of a fundraising budget can normally be viewed on the charity's website or the official website of the UK Charities Commission.
Further Information

Get more info on 'Commission Remuneration'.

External Link Exchanges

Do you know how hard it is to get a link from a large encyclopaedia? Well we're different and will prove it. To get a link from us just add the following HTML to your site on a relevant page:

<a href="http://commission__remuneration.totallyexplained.com">Commission (remuneration) Totally Explained</a>

Then simply click through this link from your web page. Our crawlers will verify your link, extract the title of your web page and instantly add a link back to it. If you like you can remove the words Totally Explained and embed the link in article text.
As long as your link remains in place, we'll keep our link to you right here. Please play fair - our crawlers are watching. Your site must be closely related to this one's topic. Any kind of spamming, dubious practises or removing the link will result in your link from us being dropped and, potentially, your whole site being banned.