die  Provision

B2

Estimated CEFR level.

/pʁoˈvɪzi̯oːn/

💰 What Exactly is a Provision?

Die Provision (feminine, plural: die Provisionen) generally refers to a performance-based remuneration or compensation. It's usually paid in addition to, or instead of, a basic salary when a specific service has been rendered, typically the successful conclusion of a deal (e.g., a sale, mediation).

Imagine a salesperson receiving a percentage of the revenue they generate – that's their Provision. So, it's a kind of profit sharing based on success.

⚠️ Attention: Don't confuse it with Proviant (provisions, food supplies), even though it sounds similar!

📊 Grammar Insights: Declining die Provision

The noun „Provision“ is feminine. Here is its declension:

Declension Singular

Declension Plural

Example Sentences

1. Der Makler erhält für die Vermittlung eine hohe Provision.
   (The real estate agent receives a high commission for the mediation.)
2. Die Höhe der Provision hängt vom Verkaufspreis ab.
   (The amount of the commission depends on the sales price.)
3. Mit dieser zusätzlichen Provision bin ich sehr zufrieden.
   (I am very satisfied with this additional commission.)
4. Er hat sich seine Provision redlich verdient.
   (He honestly earned his commission.)
5. Viele Vertriebsmitarbeiter leben hauptsächlich von ihren Provisionen.
   (Many sales representatives live mainly off their commissions.)

💼 When do we talk about Provision?

The term die Provision is primarily used in a business context, especially in sectors like:

• Vertrieb und Verkauf (Sales): For salespeople, sales representatives.
• Immobilienwesen (Real Estate): For agents (Maklerprovision, Courtage).
• Finanzdienstleistungen (Financial Services): For financial advisors, insurance agents.
• Vermittlungsagenturen (Placement Agencies): E.g., recruitment agencies.

Unlike a Gebühr (fee), which is often charged for a clearly defined service (e.g., account management fee), or a Honorar (fee), which freelancers typically receive for their expertise (e.g., lawyer's fee), the Provision is directly linked to the success of a mediation or closing a deal. It is variable and performance-related.

🧠 Mnemonics for Provision

For the article 'die': Think of 'the fee' in English. 'Fee' sounds a bit like 'die', and a commission is a type of fee. Or remember that die Belohnung (the reward) is feminine, and a commission is a reward.

For the meaning: Imagine someone having a good 'pro-vision' (foresight) for a deal and getting money for it. The 'pro-vision' brings the Provision (commission).

🔄 Similar and Opposite Terms

Risk of Confusion: As mentioned earlier, Proviant (food supplies) sounds similar but has a completely different meaning.

😂 A Little Joke

Fragt der Chef den neuen Verkäufer: „Na, wie war Ihr erster Tag?“
Verkäufer: „Super! Ich habe einen Kunden davon überzeugt, dass er nicht nur einen Staubsauger braucht, sondern gleich drei!“
Chef: „Fantastisch! Und was haben Sie verkauft?“
Verkäufer: „Einen Besen und zwei Kehrschaufeln.“

(English: The boss asks the new salesperson: "Well, how was your first day?"
Salesperson: "Great! I convinced a customer that he doesn't just need one vacuum cleaner, but three!"
Boss: "Fantastic! And what did you sell?"
Salesperson: "One broom and two dustpans."
(Okay, the commission for that probably wasn't huge...))

✒️ Poem about die Provision

Ein Abschluss winkt, das Ziel ist klar,
für den Erfolg gibt's bares bar.
Die Mühe lohnt, der Schweiß verrinnt,
die Provision man gern gewinnt.
Mal hoch, mal tief, stets variabel,
ein Ansporn, stark und formidabel.
So fließt der Bonus auf das Konto,
dank Leistung, ja, und pronto!

(English: A deal beckons, the goal is clear,
for success, cash is near.
The effort pays, the sweat does flow,
the commission is gladly won, you know.
Sometimes high, sometimes low, always varies,
a strong and formidable incentive it carries.
So the bonus flows into the account,
thanks to performance, yes, right on the mount!)

❓ Riddle Time

Ich bin ein Anteil, oft in Prozent,
den man für einen Abschluss kennt.
Mal klein, mal groß, je nach Vertrag,
Verdiene ich mich Tag für Tag.
Im Verkauf bin ich sehr beliebt,
weil's mich für Leistung meistens gibt.

Wer bin ich?

(English: I am a share, often in percent,
known for a deal's successful event.
Sometimes small, sometimes large, depending on the pact,
I earn myself day by day, that's a fact.
In sales, I am very well-liked,
because for performance, I'm usually spiked.

Who am I?)

(Solution: die Provision)

💡 More Tidbits

Word Origin (Etymology): The word „Provision“ comes from the Latin provisio, meaning „foresight“, „provision“, or „procurement“. The meaning in the sense of a commission or brokerage fee developed later, possibly from the idea that the intermediary is rewarded for the successful „procurement“ of a deal or customer.

Compounds: You often find the word in compounds like Maklerprovision (estate agent's commission), Verkaufsprovision (sales commission), Provisionsbasis (commission basis), Provisionssatz (commission rate).