What does Variable Rate Commission Mean in the in the MLS?

You may have seen this question asked when filling out your listing on the MLS.

In simple terms, a Dual/Variable Commission means that the commission charged in the listing agreement changes under special circumstances, ie, dual agency.
For example, if the listing broker charges a reduced commission if they act as the buyer’s agent too (dual agent), that is a variable commission.

CRMLS, the nation’s biggest MLS defines Dual/Variable Commission as follows:

A commission arrangement in which the seller agrees to pay a specified commission to the listing broker if the property is sold through the efforts of a cooperating broker, but the seller pays the Listing broker a different commission amount if the sale occurs if:1) there is no cooperating broker involved or 2) due to the efforts of the seller directly.