Overriding Commission

An additional commission which is paid by consignor to consignee for introducing new product in the market is called overriding commission.

Overriding commission is commission that's earned  by the field office manager and is predicated upon the business that's created by the agents within the workplace. as an example, within the insurance trade, it's a commission paid to agents who have exclusive territorial or class-of-business agreements with an insurance company, for all policies written in their territory or for that class of business, even though the business is written by other agents.

Overriding commission is that portion of a commission received and preserved by a general agent once paying the opposite portion to a manufacturing agent whose business is supervised by that general agent. also known as overwriting commission.