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THE EFFECTS OF BUSINESS COMMISSION ON GROWTH: THE TYPES AND PRINCIPLES

ABSTRACT

This study explores the impact of business commission structures on organizational growth, focusing on the various types of commissions—such as fixed, tiered, and residual—and the core principles that guide their effective implementation. Fixed commissions offer predictability, while tiered models encourage higher achievement by rewarding escalated sales performance, and residual commissions incentivize long-term client relationships and service continuity. Each model aligns differently with organizational goals and market demands, and choosing the right one can significantly influence employee engagement and business growth. Business commissions serve as monetary incentives tied to performance metrics, which motivate employees to achieve and surpass their targets. The structure of these commissions can significantly influence employee behavior and, consequently, the overall productivity and profitability of a company. Research suggests that commission plans rooted in clearly defined policies and consistent evaluation frameworks lead to higher job satisfaction and organizational loyalty. The study concluded that the underlying principles of fairness, transparency, and alignment with company goals are essential to ensuring that commissions serve as effective tools for expansion rather than sources of conflict. The study also recommended that it enables employees to know exactly how they earn their commissions. When the system is clear and easy to follow, they will trust it more and be more motivated to work hard.

KEYWORD: Business Commission, Business Growth

AKPAN, E. Ebenezer, Ph.D., FCICN, AP, PPGDCA, PHDCDPM AND Dr Clark J. LION

INTERCONTINENTAL JOURNAL OF EDUCATION, SCIENCE AND TECHNOLOGY VOL 9. NO. 1