A "5% commission" refers to a payment structure where an individual or business earns 5% of the total sales or revenue generated from a transaction. For example, if a salesperson sells a product for $100, they would earn $5 as their commission. This type of compensation is common in various industries, including real estate and retail. Commissions are often used to incentivize salespeople to increase their performance. By offering a percentage of sales, companies encourage employees to work harder to close deals, as their earnings directly correlate with their success. This system can motivate individuals to achieve higher sales volumes.