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CA CS Rohit Choudhury (CA, CS, B.com(H)) (413 Points)

12 January 2011

please help me!!!!!!

What is the difference between Brokerage and Commission????

pls reply....

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RAMESH KUMAR VERMA ( CS PURSUING ) (43853 Points)
Replied 12 January 2011

what is Commission:-

Sales commissions are paid to employees or companies that sell merchandise in stores or by calling on customers. The commission is meant to motivate sales persons to sell more. A commission may be paid in addition to a salary or instead of a salary. A common place that commissions are paid are in real estate marketing.

A commission is generally a percentage of the sales price of an item. For example, if a salesperson receives a 10% commission on their sales and sells 15000 worth of merchandise, they would earn rs. 150 in commissions.

what is Brokerage:-

Every small business owner knows the importance of having adequate business insurance. Having the right coverage may mean the difference between success or failure when faced with a natural disaster, accident, or a liability claim.

But how can you be sure of buying the right coverage? There are so many different kinds of policies, each with its own premiums and limitations, that it's easy to get confused and even end up with the wrong coverage.

That's why many business owners choose to work with independent insurance brokers. If you have not reviewed your business insurance needs lately, it’s time to dust off those policies and make sure you have adequate coverage.

If you're already working with an insurance agent, you may be reluctant to switch insurance carriers. But remember that the agent works for the insurance company, and although they are looking out for you (or at least you hope they are), their job is to keep you from switching to another carrier.

On the other hand, an insurance broker is someone who acts as a go-between for businesses and insurance companies. Once you contact a business insurance broker and let them know what you need, they will search and find the best policies for your consideration.

Brokers typically have access to dozens of carriers, and can quickly find several policies for you to consider. Remember, you do not have to pay for the services of a business insurance broker; the insurance company you end up doing business with pays the broker a commission.

A good insurance broker knows the industry, and can begin searching for additional insurance plans for you to consider. They know the procedures and processes of the various companies that offer coverage, and can cut through the red tape and interpret the jargon found in most contracts.

If you are not sure which insurance broker to contact, check with friends and other business associates to see who they are using. And don’t forget to check for referrals from your local chamber of commerce. If you hear good things about one particular insurance broker from lots of different people, look up him or her. There's nothing likea good old fashioned word of mouth referral.

You have invested time and money in your small business, so make sure that your insurance coverage is up to date. Your bottom line, and the future of your company, may depend on it.

in view of above we can say that commission and brokerage is same thing but their sense become changes.

Regards,

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hardik dave (student) (508 Points)
Replied 12 January 2011

Commission-

the remuneration or reward paid or received for buying or selling goods or for any other service for business is called commission.it may be in the form of a fixed amount or percentage.