If you generate 1m of profit, I don't think 10% is that bad. If you generate 1m of revenue then 10% is pretty good depending on operational costs. If you're talking about 1m of saving 10% is not bad. That 10% is paid in a salary.
> You call it a "commission" as if this was a salesman getting a cut of the cost of the product they sold
You can call it whatever you want, salary, bonus, commission etc. I use the word commission because it is easy to relate the concept, if you generate 4m for example what is your worth, and it is probably easier to count that as a percentage.
But fell free to use whatever nomenclature you want.
> but a salesperson selling a $1M product is not providing $1M to the company
If you are not producing sales or a product which is sold, or reducing costs just how are you adding 1m of value. By this I mean tangible value, value which you can be paid for. Because that is what we are actually talking about monetary value being added somewhere.
> On the other hand, an investor who gives the company $1M normally expects to get more than 100% of that back (with some risks, of course). Or would you say that an investment where you pay $1M to get $100K back is a good investment?
Why would I ever say investing 1m to get 100k back is a good investment, getting 1.1m back might be a good investment depending on risk though, sticking 1m in a bank I am unlikely to get that rate of return for example. But I don't understand this part at all.