A payment made to an intermediary, such as an agent, salesman, broker (see also brokerage), etc., usually calculated as a percentage of the value of the goods sold. Sometimes the whole of the commission is paid by the seller (e.g. an estate agent's commission in the UK) but in other cases (e.g. some commodity markets) it is shared equally between buyer and seller. In advertising, the commission is the discount (usually between 10% and 15%) allowed to an advertising agency by owners of the advertising medium for the space or time purchased on behalf of their clients. A commission agent is an agent specializing in buying or selling goods for a principal in another country for a commission.
Subjects: Financial Institutions and Services.