Commission vs. Bonus: What’s the Difference?

The main difference between Commission and Bonus is that commission is based on sales or performance, while a bonus is an extra reward given for good work.

Before we move to more differences, let’s first understand Commission and Bonus:

  • Commission: Commission is like a special payment that someone gets for selling things.
  • Bonus: Bonus is like an extra prize or gift that you receive for doing a good job.

Now, let’s get to Commission vs Bonus:

Major differences between Commission and Bonus

Commission Bonus
Commission is based on a percentage of sales. Bonus is typically a fixed amount or percentage given as an incentive.
Commission is directly tied to the sales performance. Bonus can be awarded for various reasons beyond sales.
Commission is common in sales roles. Bonus can be given to employees in different departments.
Commission motivates individuals to increase sales. Bonus motivates employees to achieve specific goals or milestones.
Commission is often recurring based on sales volume. Bonus is usually a one-time reward.

So, these are the main differences between the entities.

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