Regarding independent contractors, which statement is accurate?

The statement that compensation is based on performance rather than hours worked is accurate because independent contractors typically earn income through commissions based on sales performance rather than receiving a traditional salary based on hours worked. This commission-based compensation structure incentivizes independent contractors to maximize their productivity and sales, aligning their earnings directly with their effectiveness in generating real estate transactions.

In the context of real estate, independent contractors often have the flexibility to manage their time and efforts, with their income reflecting the deals they close rather than a fixed hourly wage. This reinforces the idea that their financial success correlates with their level of effort and the results they achieve in the marketplace. Thus, the emphasis on performance aligns with the nature of independent contractor agreements in real estate.