Understanding Retainers and Commissions

The video tutorial discusses different types of income, focusing on wages, salary, and commission. It explains how commission is a capitalist model that incentivizes high sales performance by offering a percentage of sales as income. The tutorial also highlights the challenges of relying solely on commission, such as economic fluctuations affecting sales. To mitigate these challenges, some workplaces offer a retainer, a fixed amount paid regularly to retain employees during low sales periods. The video concludes by contrasting the variable nature of commission with the constant nature of retainers.

What are the two main types of income discussed in the video?

• Commission and retainer

• Wages and salary

• Salary and commission

• Wages and commission

How is commission described in contrast to wages and salary?

• As a capitalist model

• As a socialist model

• As a modern model

• As a traditional model

What is the primary factor that commission rewards?

• Time spent at work

• Number of hours worked

• Sales performance

• Years of experience

In the context of real estate, how is commission typically calculated?

• As a monthly salary

• As a fixed amount per sale

• As a bonus at the end of the year

• As a percentage of the sale price

What is a potential downside of commission for employees?

• It guarantees a high income

• It provides a stable income

• It can result in zero income during bad months

• It is unaffected by market conditions

What is a retainer in the context of commission-based jobs?

• A bonus for high sales

• A percentage of total sales

• A fixed salary regardless of sales

• A penalty for low sales

Why do employers offer a retainer to their employees?

• To increase competition among employees

• To retain employees during low sales periods

• To reduce overall salary expenses

• To encourage employees to work longer hours

What is the main purpose of a retainer from the employer's perspective?

• To reduce employee benefits

• To increase the commission rate

• To retain employees during low sales periods

• To ensure employees work overtime

How does the retainer benefit employees in a commission-based job?

• It reduces their working hours

• It guarantees a promotion

• It provides a stable income during low sales

• It increases their commission rate

What are the two components of the income structure discussed in the last section?

• Base pay and incentives

• Wages and overtime

• Commission and retainer

• Salary and bonus