What is the term for compensation that is a percentage of sales for sales associates?

The correct term for compensation that is a percentage of sales for sales associates is commission. Commission is a payment structure that incentivizes sales performance by rewarding individuals based on the amount of sales they generate. This form of compensation motivates sales associates to increase their productivity and boosts overall sales for the company.

Bonus refers to a one-time incentive awarded for meeting specific performance targets but does not routinely tie into individual sales. Salary indicates a fixed regular payment that does not directly depend on sales performance, while a tip is typically given as a gratuity for service rather than being a structured part of a compensation plan for sales associates. Therefore, commission is the most appropriate term reflecting a performance-based payment model linked directly to sales achievements.