Commission Rates by Industry (2026)
Typical rates and structures across the industries that pay on commission — gathered in one table. Rates are market norms, not rules: your plan document always wins.
| Industry | Typical rate | Structure |
|---|---|---|
| Real estate | 2.5–3% per side | % of sale price, split with brokerage (50/50 to 90/10), fees per transaction |
| Auto sales | 20–30% of gross | % of front-end gross profit after pack; minis on skinny deals; unit bonuses |
| Solar | $0.30–$1.00/W margin | Redline: (sold $/W − baseline) × watts; setter/closer splits; milestone payouts |
| Roofing | 8–12% of contract | Or 50/50 profit split after job costs; paid as insurance checks collect |
| Insurance — P&C | 10–15% first year | 8–12% renewals; the renewal book is the long-term asset |
| Insurance — life | 60–90% of year-1 premium | 2–5% renewals; commissions advanced, charged back on lapse |
| Timeshare / vacation ownership | 4–10% of contract | Often gated/scaled by down payment; retroactive monthly volume tiers; TO overrides |
| SaaS / B2B software | ~10% of ACV | Quota/OTE model, 50/50 splits, accelerators above 100% |
| Mortgage origination | 0.5–2% of loan (bps) | Basis points per funded loan, tiered by monthly volume |
| Recruiting / staffing | 15–25% of placement fee | Agency bills ~20% of salary; recruiter keeps a slice; contract roles pay on margin |
| Medical devices | 10–20% blended | Base + commission on territory sales; quota bonuses; consignment complexity |
| Furniture / retail big-ticket | 4–8% of sale | Sometimes against a draw; spiffs on promoted lines |
| Freight brokerage | 10–20% of load margin | % of gross margin per load, paid as customers pay |
| Advertising / media | 5–15% of contract | New business vs renewal rates; agency vs direct varies widely |
Reading the table honestly
Three caveats before quoting any of these numbers in a negotiation:
- The base matters more than the rate. 25% of gross profit (auto) can pay less than 3% of sale price (real estate) on the same dollar volume. Always ask "percent of what" first — the answer is the real compensation plan.
- Timing is part of the rate. A 10% commission paid at booking is worth more than 12% paid when the customer's insurance company settles nine months later. Clawback windows discount every advance.
- Ranges hide the split. Most published ranges quote the commission the house receives; your share after brokerage/team/TO splits is what lands in your account. The gross vs net guide walks the full waterfall.
Run your own numbers
Every linked industry above has a working calculator that models its actual structure — packs, redlines, splits, renewals, tiers — not just a flat percentage. And whatever your structure is, the Controlla app applies it to every sale you log and shows what each payday will bring.
Frequently asked questions
What is a good commission rate for sales?
It depends entirely on the base: 2.5–3% of a home price, 20–30% of a car deal's gross profit, ~10% of a SaaS contract's annual value, and 60–90% of a life-insurance first-year premium are all normal. Compare structures, not percentages.
Which sales industry pays the highest commission?
Per deal: enterprise software, medical devices, and commercial real estate produce the largest single commissions. Per hour of work at the median, established insurance books and mortgage origination are hard to beat because of renewals and volume.
Are commission rates negotiable?
Usually within bands — splits, accelerators, and draw terms are more negotiable than the headline rate. Producers with a book of business or proven volume negotiate from a very different position than new hires.