Kickback vs. Commission — What's the Difference?
Edited by Tayyaba Rehman — By Urooj Arif — Updated on May 12, 2024
A kickback involves an illicit payment for preferential treatment or services, often seen as corrupt, while a commission is a legitimate form of earnings based on sales or services rendered.
Difference Between Kickback and Commission
Table of Contents
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Key Differences
A kickback is typically a secret payment made as a return for favoring or promoting a specific product, service, or decision, usually involving corruption or unethical behavior. On the other hand, a commission is a formally agreed-upon amount paid to an individual, typically a percentage of the sales they generate, recognized as a legitimate business practice.
Kickbacks are often illegal and can be associated with government or corporate bribery, where individuals receive unauthorized benefits for influencing decisions. Conversely, commissions are standard in sales environments, motivating employees or agents by directly linking their earnings to their performance outcomes.
While kickbacks can damage an organization’s reputation and lead to legal consequences for parties involved, commissions are designed to enhance productivity and success, being both motivational and transparent in their structure.
Companies caught in kickback schemes face significant fines and eroded public trust, while those offering commissions are seen as fostering a competitive, incentive-based work culture, enhancing both growth and customer service.
Comparison Chart
Nature
Illicit, secretive.
Legitimate, contractual.
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Purpose
To illicitly influence a decision.
To motivate and reward performance.
Legality
Illegal and unethical.
Legal and standard practice.
Common Environments
Government contracts, corporate deals.
Sales jobs, real estate, insurance.
Outcome for Business
Legal repercussions, reputation loss.
Increased sales, employee motivation.
Compare with Definitions
Kickback
A return payment made as a reward for fostering business deals underhandedly.
The contractor received a kickback for securing the construction contract.
Commission
An instruction, command, or role given to a person or group
One of his first commissions was to redesign the Great Exhibition building
He received a commission to act as an informer
Kickback
Usually secretive and against ethical norms.
Kickbacks were covertly paid through offshore bank accounts.
Commission
A group of people entrusted by a government or other official body with authority to do something
A commission was appointed to investigate allegations of police violence
Kickback
A sharp reaction; a repercussion.
Commission
A sum, typically a set percentage of the value involved, paid to an agent in a commercial transaction
He sold cosmetics on commission
Foreign banks may charge a commission
Kickback
(Slang) A return of a percentage of a sum of money already received, typically as a result of pressure, coercion, or a secret agreement.
Commission
A warrant conferring the rank of officer in an army, navy, or air force
He has resigned his commission
She intended to apply for a commission in the army
Kickback
(countable)Exercise A backward kick, a retrograde movement of an extremity.
Commission
The action of committing a crime or offence
The commission of an arrestable offence
The errors are of omission rather than commission
Kickback
A covert, often illegal, payment in return for a favor consisting of providing an opportunity of chargeable transaction; a kind of bribe. Category:en:Corruption
Commission
Order or authorize the production of (something)
The portrait was commissioned by his widow in 1792
Kickback
Recoil; a sudden backward motion, usually in the direction of the operator.
Commission
Bring (something newly produced) into working condition
The aircraft carrier was commissioned in 1945
We had a few hiccups getting the heating equipment commissioned
Kickback
An accident where an object being cut by a rotating blade or disk, such as a circular saw, is caught by the blade and thrown outward.
Commission
Appoint (someone) to the rank of officer in an army, navy, or air force
He was commissioned into the Royal Fusiliers
Kickback
An accident wherein the upper tip of the bar of a running chainsaw contacts a relatively immovable object, forcing the bar upwards and pressing the running chain more firmly against the object, causing the saw to be hurled upwards and backwards into the operator's face.
Commission
The act of granting certain powers or the authority to carry out a particular task or duty.
Kickback
(oil drilling) A dangerous buildup of gas pressure at the wellhead.
Commission
The authority so granted.
Kickback
The board separating one bowling lane from another at the pit end.
Commission
The matter or task so authorized
Investigation of fraud was their commission.
Kickback
In contract bridge, an ace asking convention initiated by the first step above four of the agreed trump suit.
Commission
A document conferring such authorization.
Kickback
(pinball) A feature that saves the ball from draining and propels it back into play.
Commission
A public board or administrative body
The Federal Trade Commission investigates false advertising.
Kickback
A relaxed party.
Commission
Often Commission A ruling council within the Mafia that adjudicates family disputes and regulates family activities.
Kickback
Recoil, of a gun or machine, as in older automobile engines when started by turning a crank.
Commission
The act of committing or perpetrating
The commission of a crime.
Kickback
A secret, and usually illegal, payment, by a recipient of money paid for goods or services, to a facilitator of the transaction, of a portion of that money;
Commission
A fee or percentage allowed to a sales representative or an agent for services rendered.
Kickback
A commercial bribe paid by a seller to a purchasing agent in order to induce the agent to enter into the transaction
Commission
An official document issued by a government, conferring on the recipient the rank of a commissioned officer in the armed forces.
Kickback
Often involves government or corporate bribery.
He was charged with accepting kickbacks for facilitating illegal permits.
Commission
The rank and powers so conferred.
Kickback
Can lead to legal action and public disgrace.
The company faced a scandal after the kickbacks were disclosed.
Commission
To grant a military commission to.
Kickback
Damages trust and undermines fair business practices.
The kickback scheme eroded the community’s trust in the local government.
Commission
To grant authority for (something to be made or done); place an order for
Commission a new symphony for the festival.
Commission
To authorize or engage (someone to do something)
Commission an architect to design a building.
Commission
To put (a ship) into active service.
Commission
A sending or mission (to do or accomplish something).
Commission
An official charge or authority to do something, often used of military officers.
David received his commission after graduating from West Point.
Commission
The thing to be done as agent for another.
I have three commissions for the city.
Commission
A body or group of people, officially tasked with carrying out a particular function.
The European Commission
The Electoral Commission
The Federal Communications Commission
The company's sexual harassment commission made sure that every employee completed the on-line course.
Commission
A fee charged by an agent or broker for carrying out a transaction.
A reseller's commission
The real-estate broker charged a four percent commission for their knowledge on bidding for commercial properties; for their intellectual perspective on making a formal offer and the strategy to obtain a mutually satisfying deal with the seller in favour of the buyer.
Commission
The act of committing (e.g. a crime or error).
The commission, preparation or instigation of an act of terrorism
Commission
(transitive) To send or officially charge someone or some group to do something.
James Bond was commissioned with recovering the secret documents.
Commission
(transitive) To place an order for (often a piece of art).
He commissioned a replica of the Mona Lisa for his living room, but the painter gave up after six months.
Commission
To put into active service.
The aircraft carrier was commissioned in 1944, during WWII.
Commission
The act of committing, doing, or performing; the act of perpetrating.
Every commission of sin introduces into the soul a certain degree of hardness.
Commission
The act of intrusting; a charge; instructions as to how a trust shall be executed.
Commission
The duty or employment intrusted to any person or persons; a trust; a charge.
Commission
A formal written warrant or authority, granting certain powers or privileges and authorizing or commanding the performance of certain duties.
Let him see our commission.
Commission
A certificate conferring military or naval rank and authority; as, a colonel's commission.
Commission
A company of persons joined in the performance of some duty or the execution of some trust; as, the interstate commerce commission.
A commission was at once appointed to examine into the matter.
Commission
The acting under authority of, or on account of, another.
Commission
To give a commission to; to furnish with a commission; to empower or authorize; as, to commission persons to perform certain acts; to commission an officer.
Commission
To send out with a charge or commission.
A chosen bandHe first commissions to the Latian land.
Commission
A special group delegated to consider some matter;
A committee is a group that keeps minutes and loses hours
Commission
A fee for services rendered based on a percentage of an amount received or collected or agreed to be paid (as distinguished from a salary);
He works on commission
Commission
The act of granting authority to undertake certain functions
Commission
The state of being in good working order and ready for operation;
Put the ships into commission
The motor was out of commission
Commission
A group of representatives or delegates
Commission
A formal statement of a command or injunction to do something;
The judge's charge to the jury
Commission
An official document issued by a government and conferring on the recipient the rank of an officer in the armed forces
Commission
The act of committing a crime
Commission
A special assignment that is given to a person or group;
A confidential mission to London
His charge was deliver a message
Commission
Put into commission; equip for service; of ships
Commission
Place an order for
Commission
Charge with a task
Commission
A percentage of sales given to salespeople as part of their earnings.
She earned a 10% commission on every car she sold.
Commission
Legally binding and transparently structured.
His employment contract outlines the commission rates for various services.
Commission
Incentivizes high performance and productivity.
Commissions have motivated the sales team to exceed their quarterly targets.
Commission
Widely accepted and ethical business practice.
Offering commissions is a common practice in the insurance industry.
Commission
Enhances competitiveness and customer service.
With commissions driving earnings, customer engagement has improved significantly.
Common Curiosities
Can a commission be unethical?
Typically, commissions are ethical, but they can become unethical if they lead to misleading sales practices or exploitation.
How do companies ensure commissions are fair?
Companies typically set clear, contractual guidelines and ensure transparency in tracking and paying commissions.
Who typically receives commissions?
Sales representatives, real estate agents, and insurance brokers are common recipients of commissions.
How do organizations prevent kickbacks?
Organizations can prevent kickbacks by enforcing strict ethical guidelines, auditing, and transparency in their operations.
Can a commission structure affect consumer prices?
Yes, commission structures can influence pricing, especially if high commissions drive more aggressive sales tactics.
What is the key difference between a kickback and a commission?
A kickback is an illicit payment for favoritism, while a commission is a legitimate earning based on sales or services performed.
What are the consequences of kickbacks?
Kickbacks can lead to legal penalties, damaged reputations, and loss of trust among stakeholders.
Why might someone prefer a commission-based job?
Individuals may prefer commission-based jobs for the potential to earn significantly based on performance.
Are kickbacks legal?
No, kickbacks are illegal and considered a form of corruption.
What are typical rates for commissions?
Commission rates vary widely but typically range from 5% to 25% depending on the industry and product type.
Are there regulations governing commissions?
Yes, commissions are often regulated to ensure fairness and transparency, particularly in financial services.
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Written by
Urooj ArifUrooj is a skilled content writer at Ask Difference, known for her exceptional ability to simplify complex topics into engaging and informative content. With a passion for research and a flair for clear, concise writing, she consistently delivers articles that resonate with our diverse audience.
Edited by
Tayyaba RehmanTayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
