Question

What is the difference between a traditional commission agreement and a management fee agreement?

Answer 1

Answer : Difference between traditional Commission agreement versus management fee agreement are:

• Meaning : Traditional commission agreement means that a contract between employer and employee for work paid on commission.The agreement is helpful for both employer as well as employee.It is just a separate money has been given to the employee for trade execution.where as management fee agreement is a contract between an independent contractor vs a company.
• Focus : Traditional contract agreement main focus is to increase the sales by the employee for the employer whereas management fee agreement main focus of an independent contractor is to work done for the company . There main focus on the reduction of the cost.
• Traditional contract agreement is done for the increasing sales whereas management fee agreement is to reduce the operational cost of an entrepreneur.