This infographic explains the differences between bonuses and commissions and how organizations can select the right incentive model. A bonus is generally a fixed payment for achieving a defined objective and may be calculated as a percentage of salary or a set amount. Commission is variable compensation linked directly to individual sales performance. Bonus eligibility and payout levels are often determined by business results, while commission plans use quotas to guide earnings. Bonus plans are common in mature or complex organizations and may combine base salary with performance recognition. Commission plans can be used with or without base pay and are often suited to growth-stage businesses or new roles. The choice should reflect performance expectations, affordability, non-financial r

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