A "commission-based" payment structure means that individuals earn money based on the sales they generate or the services they provide. This system is commonly used in fields like sales, where a salesperson receives a percentage of the revenue from each sale they make. The more they sell, the higher their earnings. In a commission-based model, income can vary significantly from month to month, depending on performance. This approach incentivizes employees to work harder and achieve better results, as their earnings are directly tied to their success. Many companies, including real estate agencies and insurance firms, utilize this model to motivate their staff.