Commissions
Commissions are fees paid to a broker or salesperson for services rendered in the sale of a product or service. They are typically a percentage of the total sale price, and are paid by the seller or buyer. Commissions are most commonly used in the real estate, stock market, and insurance industries, but can be found in many other industries as well.
History of Commissions
The concept of commissions has been around for centuries. In the Middle Ages, merchants would pay a commission to a broker for finding a buyer for their goods. In the 18th century, the practice of paying commissions to salespeople for selling goods and services became more common. In the 19th century, the stock market began to use commissions as a way to pay brokers for their services. Today, commissions are used in many industries, including real estate, insurance, and investments.
Comparison of Commissions
| Industry | Commission Rate |
|---|---|
| Real Estate | 3-6% |
| Stock Market | 0.5-2% |
| Insurance | 10-20% |
Summary
Commissions are fees paid to a broker or salesperson for services rendered in the sale of a product or service. They are typically a percentage of the total sale price, and are paid by the seller or buyer. Commissions are most commonly used in the real estate, stock market, and insurance industries, but can be found in many other industries as well. For more information on commissions, visit websites such as Investopedia, The Balance, and Investing.com.
See Also
- Brokerage Fees
- Sales Incentives
- Discounts
- Rebates
- Markups
- Premiums
- Dividends
- Interest
- Taxes
- Commission Structures
