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.
Also see:
- Product Management vs. Software Engineering
- Strategy Consulting vs. Management Consulting
- Coaching vs. Feedback
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