A sales commission is a payment made to a salesperson based on the sales they generate. This compensation structure incentivizes salespeople to sell more, as their earnings increase with higher sales volumes. Commissions can be a fixed percentage of sales or vary based on specific targets or performance levels. Typically, companies use sales commissions to motivate their sales teams and align their interests with business goals. This approach can lead to increased productivity and revenue for the company while providing salespeople with the opportunity to earn more based on their efforts and success in selling products or services.