Simmonds Podcasts
B2Monologue4 Min.

Explaining Why "Provision" Is Not the English Word for Sales Commission

A sales manager offers an eight per cent "provision" — and the American lawyer starts looking for the contract clause. Why the English word is "commission".

Editorially reviewed by James Simmonds – English teacher since 2004Published

Why "Provision" Is Not the English Word for Sales Commission

SceneStefan tells the story of a partner negotiation with a Chicago distributor that stalled over a single word: "provision". A lesson on the most expensive false friend in sales.
0:00 / 4 Min.

Tip: listen to the episode twice before you start the test.

To the comprehension test
Stefan — Sales director, software company

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Comprehension test

Listen first, then answer. No penalties — every explanation points to the moment in the conversation.

01What mistake did Julia make in her email?
02What did the American lawyer understand by "provision"?
03In English, a salesperson earns a provision on every sale.
04An English contract contains provisions.
05Which word is missing?

Once Julia wrote 'a ___ of eight percent on every sale', the negotiation moved fast.

06Which word is missing?

A provision, in English business language, is something completely different: a ___ in a contract.

07Put the events in the correct order.

Transcript

The full transcript opens after the comprehension test — so you train real listening instead of reading along.

Key phrases

commission
a percentage of a sale paid to the seller or agent
She earns a ten per cent commission on every new contract.
commission rate
the percentage used to calculate the commission
The commission rate for new partners is eight per cent.
on a commission basis
paid through commission rather than a fixed salary
Our sales agents work on a commission basis.
provision
a clause or condition in a contract
The confidentiality provision applies for five years after termination.
clause
a distinct section of a legal document
Please review the termination clause before you sign.
to make provision for
to prepare or arrange for something in advance
The budget makes provision for unexpected travel costs.
distributor
a company that sells another company's products
We signed a new distributor for the North American market.
quarterly
happening every three months
Commission payments are made quarterly, at the end of March, June, September and December.

Language notes

In this episode a sales director explains the most expensive false friend in sales: German "Provision" is "commission" in English — the English "provision" is a contract clause. You learn the three core commission phrases and the other meanings of "provision" (arrangement, accounting reserve) at level B2.

The three core phrases around "commission"

Negotiating sales compensation takes exactly three patterns: "a commission rate of eight percent" (the rate), "to work on a commission basis" (the model) and "the commission is paid quarterly" (the payout). With these you can describe any partner model precisely. The amount itself pairs with "to earn" or "to receive": "Our partners receive a commission on every sale."

What "provision" really means in English

The English word "provision" has three business meanings — none of them money for salespeople: first the contract clause ("the confidentiality provision"), second the arrangement ("to make provision for delays"), third the accounting reserve ("a provision for bad debts"). The episode's rule of thumb: if it sits in a contract or in the accounts, it is a provision. If it lands in someone's pocket, it is a commission.

Cultural note: talking about commission openly

In American and British sales culture the commission structure is a completely normal negotiation topic. "What does the commission structure look like?" is considered professional, not intrusive — unlike in Germany, where compensation is often discussed only behind closed doors. Asking the question openly and answering it precisely signals negotiation experience.

Keep practising: Learn business English online — with real teachers from Simmonds, since 2004.

Frequently asked questions

What language level is this episode for?

Level B2 (CEFR). The monologue uses real-world sales and contract English; all eight key terms are explained bilingually.

What is the English word for German "Provision"?

"Commission". Examples: "We offer a commission rate of eight percent", "Our partners work on a commission basis". The English word "provision" means a contract clause, an arrangement or an accounting reserve — never the money from a sale.

Is there a transcript to read along?

Yes, the full transcript with German support notes is on this page — listen first, then take the test, then read along.

Where can I practise sales English live?

In the online business English courses from Simmonds Language Services (englisch-lehrer.com/online): live lessons with real teachers on Zoom, for companies and individuals across Germany — starting with a free consultation.

Are the voices real?

Episodes are produced with high-quality AI voices (Hume) and editorially reviewed by our trainer team — the same method as our interactive lessons.

Want to practise these phrases in a real conversation?

The podcast trains your ear — in our online lessons you practise the conversation yourself, with real teachers. For companies across Germany since 2004.

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