What payment structure allows a licensee to start at a lower commission rate that increases with production?

The correct answer is the Graduated Payment Plan, which is designed to motivate licensees by starting them at a lower commission rate that gradually increases as their production levels rise. This structure provides an incentive for agents to enhance their performance and increase sales, allowing them to earn a larger commission percentage as they meet or exceed specific sales targets.

In contrast, a Flat Fee Payment Plan involves a fixed amount that does not change regardless of sales performance, which does not encourage increased effort based on sales outcomes. A Commission Split Plan typically divides the commission between the brokerage and the agent but does not inherently provide for an increase in commission based on production metrics. A Tiered Commission Plan, while it does involve various levels of commission rates based on performance, is not as directly labeled as "graduated" as the Graduated Payment Plan, making the latter the more suitable choice for this specific question.