What is uncapped commission?

Uncapped commission is a form of sales compensation where there is no limit or cap on the amount of commission an employee can earn. This means that the more sales an employee makes, the more commission they will earn, with no ceiling on the potential earnings.

Uncapped commission can be a motivating factor for sales employees, as it incentivizes them to work harder and make more sales in order to earn higher commissions. This can result in increased productivity and performance, as employees strive to maximize their earnings.

However, uncapped commission can also be risky for employees, as there is no guarantee of a certain level of income. Sales can fluctuate and there may be periods where the employee earns less commission than expected. This can lead to financial uncertainty and instability for employees relying on commission as a significant portion of their income.

Overall, uncapped commission can be a powerful motivator for sales employees, but it is important for companies to provide support and guidance to ensure that employees can manage the potential risks and uncertainties associated with this compensation structure.