Flat rate commission is one of the simplest commission models. It is based on a fixed percentage of the sale, which is paid to the seller regardless of the size of the deal, product or customer. For example, if the rate is 5 percent, it means that each order triggers exactly the same proportional reward.
The advantage of flat rate commission is transparency and simplicity. Sellers always know what to expect to earn, and the company avoids complex calculations. The downside is that the model does not necessarily reward exceptional performance or support strategic priorities.
Despite its simplicity, flat rate commission is still widely used, especially in industries where the sales process is straightforward and where motivation lies in volume rather than complexity.