Net commission refers to the actual income that a salesperson, agent, or broker earns after all deductions have been made from the gross commission. This includes any fees, taxes, or other expenses that might be subtracted from the total commission earned on a sale.
For example, if a real estate agent sells a property and earns a gross commission of $10,000, but has to pay $2,000 in fees, the net commission would be $8,000. Understanding net commission is crucial for sales professionals, as it gives a clearer picture of their take-home earnings from transactions.