A trailing commission is compensation paid to salespersons for months or years in the future.

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A trailing commission is a type of commission that is paid to salespeople for a period of time after the initial sale. This is a common practice in industries like insurance and finance, where products have ongoing service requirements or subscription fees. Trailing commissions are often calculated as a percentage of the ongoing revenue generated by the client or customer, and can continue for months or even years.

A Trailing Commission Is Compensation Paid to Salespersons for Months