Commissions, often referred to as fees, are payments made to individuals or companies for facilitating a transaction or providing a service. These fees are typically a percentage of the total sale or a fixed amount agreed upon in advance. Common examples include real estate agents receiving a commission for selling a property or brokers earning fees for executing trades in financial markets. In many industries, commissions serve as an incentive for salespeople to increase their performance and drive sales. They align the interests of the salesperson with those of the business, encouraging them to work harder to close deals and generate revenue.