Agent commissions are fees paid to agents for their services in facilitating transactions, such as real estate sales or insurance policies. Typically, these commissions are a percentage of the total sale price or premium, incentivizing agents to secure the best deals for their clients. In the real estate industry, for example, a common commission rate is around 5-6% of the home's sale price, which is usually split between the buyer's and seller's agents. This system aligns the interests of agents with those of their clients, as higher sales lead to higher commissions.