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Sales & Retail vocabulary · Targets, Metrics & Commission

Commission cap

Meaning in sales & retail, with examples

nounAdvanced term

In sales & retail, commission cap means: A limit on the amount of commission a salesperson can earn under a pay plan.

In Turkish: prim tavanı

How it is used

Use for a maximum payout; distinguish a monetary ceiling from a target that can be exceeded.

Example sentences

  1. Her commission cap is 30,000 euros, even if additional sales would otherwise earn more.

    The cap restricts payout rather than restricting the value of sales.

  2. The new plan removed the commission cap for approved enterprise contracts.

    Removing a cap changes the upper earnings limit under the specified rules.

Common collocations

  • annual commission cap
  • remove a commission cap
  • commissionMoney paid to a salesperson based on the sales they make, usually a percentage of the value of each sale or of total revenue.
  • on-target earningsThe total pay a salesperson can expect in a year if they reach 100 percent of their target, made up of base salary plus commission or bonus.

More terms: Targets, Metrics & Commission

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