How is a sales commission calculated?

A sales commission is calculated using the commission structure agreed upon between the owner or manager of a business and a salesperson. This commission structure is sometimes received as a one-time payment. However, it can also be received as a recurring commission over the life of the sales account.

If a salesperson agrees to receive 20 percent of every sale she makes, she would receive $20 off of every $100 sale that she makes. If she sells accounts that make monthly payments, she then receives a recurring commission each and every month that the bill for the sale is paid by the sales account holder.