How To Calculate, Find Earnings, Pay From Commission On Sales Explained - What Is Sales Commission?

In this video we go through how to find or calculate earnings from straight commission, where a person is paid based on their sales. We go through the formula and a couple of examples.

Transcript/notes
Some jobs are based entirely on straight commission, where their earnings are paid on fixed percent of sales. The formula for calculating their pay is gross earnings, or pay, equals, the commission rate times the amount of sales.

As an example, lets say that a company hires someone as a food supplement sales representative. They are paid a 15% commission on sales they make. During a one month period they sell $20,000 in products, what is their earnings for the month?

Using our formula, we have earnings equals, 15%, their commission rate, times $20,000, their sales for the month. We first need to change 15% to a decimal by dropping the percent sign and moving the decimal 2 places to the left to get .15. Now we have .15 times $20,000, which calculates to $3000. So, their monthly earnings was $3000.

Timestamps
0:00 Formula for sales commission
0:12 Example of sales commission
0:51 More examples of calculating sales commission