Definition, Meaning & Synonyms

trail-commission

Noun

ˈtreɪl kəˈmɪʃən

Definition

A payment made to a broker or agent as a percentage of the revenue generated from a transaction or ongoing business, typically paid for a specific period after the initial sale.

Examples

The real estate agent received a trail-commission for facilitating the sale and subsequent rental of the property.
Investors often prefer mutual funds that offer trail-commission fees because they reward financial advisors for ongoing support.

Meaning

Trail-commission refers to a commission structure where agents continue to earn payments as long as the business relationship or service is maintained.