Why can’t we use a percentage to calculate the redemption type commission? (New Version)

Modified on Wed, 25 Sep, 2024 at 6:13 PM

Why can’t we use a percentage to calculate the redemption type commission?

It is often simpler and more effective to pay a fixed amount per redemption rather than relying on a percentage-based system. 


You can refer to the following explanation.


The redemption type commission is calculated based on the number of times a customer redeems. For instance, if a salesperson processes 30 redemptions in a month, the commission can be calculated at RM10 per redemption (30 * RM10). However, it cannot be expressed as a percentage because each redemption does not carry an intrinsic value, making percentage calculations unsuitable.





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