Working on commission for commercial sales is a common practice in many industries. The main reason for this is that it incentivizes salespeople to work harder to generate revenue for the company. When a salesperson is paid solely on a commission basis, they are highly motivated to make as many sales as possible, as this directly affects their income.
Furthermore, commission-based pay allows companies to avoid the risk of paying a fixed salary to a salesperson who may not perform as well as expected. With commission-based pay, the company only pays the salesperson when they make a sale, which means that the company only incurs costs when revenue is generated.
Another advantage of commission-based pay is that it can attract highly skilled salespeople who may be looking for a role that offers unlimited earning potential. Salespeople who are confident in their ability to sell can earn significantly more through commission-based pay than they would through a fixed salary.
In summary, working on a commission for commercial sales incentivizes salespeople to work harder, reduces the risk for the company, and can attract highly skilled salespeople who are motivated by unlimited earning potential.