How is a commission paid to an agent typically calculated?

A commission paid to an agent is often calculated as a percentage amount based on sales. This method aligns the agent's compensation with the actual sales they generate, which serves as an incentive for them to maximize sales and clients' interests. When an agent receives a commission in this manner, it reflects the principle that their earnings are directly tied to their performance in closing deals or selling products.

Calculating commissions this way encourages agents to work diligently, as their income will increase with higher sales volumes. This model is common across various industries, including real estate and sales, where agents typically are motivated to enhance their efforts to close more transactions.

The other options present different compensation structures that do not typically apply to commission payments. A flat fee based on project scope is usually set beforehand and does not vary with performance. An hourly wage compensates for time spent rather than sales generated, which is not aligned with a commission model. Similarly, a percentage of the total project budget might apply in some specific scenarios (like in architectural fees), but it is not the standard commission approach based on sales performance. Thus, the correct answer reflects the prevalent practice in commission calculations.