A commission-based model is a payment structure where individuals earn a percentage of the sales they generate. This model is commonly used in industries like real estate, sales, and affiliate marketing. Instead of receiving a fixed salary, workers are motivated to increase their sales to earn more income. In this model, the commission rate can vary based on the product or service sold. For example, a real estate agent might earn a higher percentage for selling luxury homes compared to standard properties. This incentivizes agents to work harder and close more deals, benefiting both the agent and the company.