Ceding Commission

You don't get the commission. For whatever reason...conflict of interest...maybe someone else in the office saw the elephant first...you cede, or don't accept, or just don't take the commission you might have otherwise earned.

Poor you. Think: "Now I pay less in taxes."

Related or Semi-related Video

Finance: What is commission?112 Views

00:00

finance a la shmoop. what is commission? well it's the greatest motivator for

00:08

salespeople in the world. it's the money some people make above and beyond their [ commission explained on a large screen]

00:13

salary. a little monetary carrot dangling out in front of a salesperson to you

00:18

know encourage them to sell sell sell. alright you're an agent who just sold a

00:22

house good for you. you get a 3% Commission. the house went for a million

00:27

bucks well you get 30 grand for the privilege or at least your brokerage

00:30

does, and then you get some piece of that. ok now you're the stock broker who sold

00:34

3 million shares of stock. well good for you

00:37

you get four cents a share in Commission 120 grand in the pocket of your

00:41

brokerage and you get some piece of that Commission. you're the Hollywood agent[equation]

00:45

who just inked Brad pitiful into a movie deal worth 20 million bucks, well good

00:49

for you your agency gets a 10% commission or two

00:53

million dollars. yeah that's for a Dewey Cheatham and Howe agency best one in

00:57

Hollywood. yeah they rep Harvey Weinstein. now for someone who's attempting to sell

01:02

a polished version of that Harvey Weinstein story well that's a commission

01:07

impossible. [man frowns]

Find other enlightening terms in Shmoop Finance Genius Bar(f)