Overriding Commission

Overriding commission, often referred to simply as override commission, is a type of compensation arrangement commonly used in sales organizations, particularly in multi-level marketing (MLM) or direct selling companies.

Who benefits from overriding commission?

Several parties benefit from overriding commission within a sales organization:

• Individuals earning override commissions: They benefit directly from the additional income earned based on the sales performance of their team or downline.
• Sales managers or team leaders: They benefit from building and leading successful teams, as they earn override commissions on the sales generated by their downline members.‍
• Company or organization: Companies benefit from override commissions by incentivizing recruitment and the development of a strong sales force. It encourages team building, boosts morale, and can lead to increased sales and revenue for the organization.

What is the override commission in travel industry?

In the travel industry, override commission refers to the additional commission earned by travel agencies or agents based on the sales performance of their sub-agents or the travel consultants they manage. Here's how it typically works:

• Travel agencies or host agencies often have networks of independent travel consultants or sub-agents who sell travel products and services.
• When these sub-agents make bookings or generate sales, a portion of the commission earned from those bookings may be paid to the supervising agency or agent as an override commission.
• The override commission is usually a percentage of the commission earned by the sub-agent or consultant and is determined by the agreement between the parties involved.