Sales commission is a percentage of the revenue generated from a sale that is given to the salesperson who made the sale. This commission is typically a percentage of the sale price, but can also be a set fee. Sales commission incentivizes salespeople to generate more sales and can be used as a way to Performance-based pay. In order for a company to offer sales commission, they first need to establish what their overall sales goals are. Once these goals are set, the company can then start to develop a commission structure that will help them reach their targets. This commission structure will vary based on the products or services being sold, the average sale price, and the company's desired profit margin.