Business

Commission

What Does Commission Mean in Art?

The word commission carries two distinct meanings in the art world, and understanding both is essential for collectors. The first meaning refers to the act of hiring an artist to create a specific work. Commissioned artworks have a history stretching back millennia, from the Pharaohs of Egypt to the Medici of Florence to today's corporate and private collectors. When you commission an artwork, you work directly with the artist to define the parameters of the project, which might include subject matter, dimensions, medium, timeline, and price. The result is a unique work created specifically for you.

Commissioning art from living artists is one of the most rewarding aspects of collecting. It allows you to participate in the creative process, build a direct relationship with the artist, and acquire a work that is tailored to your vision and space. Portrait commissions remain popular, but contemporary commissions span every conceivable medium, from site-specific sculptures and murals to digital installations. When commissioning a work, it is standard practice to agree on terms in writing, including a detailed description of the work, the fee structure, a payment schedule tied to milestones, and provisions for what happens if either party is unsatisfied with the result.

The second meaning of commission refers to the fees charged by intermediaries in art transactions. Galleries typically take a commission of 40 to 60 percent of the sale price when they sell an artist's work. Auction houses charge both a buyer's premium, added to the hammer price, and a seller's commission, deducted from the proceeds. Art advisors may charge a commission of 5 to 20 percent on acquisitions they facilitate, though some work on flat fees instead.

Why Does It Matter for Collectors?

Understanding commission structures is crucial for making financially sound collecting decisions. When buying from a gallery, the listed price already includes the gallery's commission, so the amount you pay is straightforward. At auction, however, the buyer's premium is added on top of the hammer price, and this can add 20 to 26 percent to your total cost. Always factor in the full commission structure when budgeting for a purchase.

If you are commissioning an artwork directly from an artist, clarify all terms upfront and put the agreement in writing. Discuss whether the commission fee covers materials, framing, shipping, and installation, or whether these are additional costs. A clear commission agreement protects both you and the artist and ensures the creative process proceeds smoothly.