Final answer:
The compensation system under which the agency compensation is tied to performance is the commission-based system.
Step-by-step explanation:
The compensation system under which the agency compensation is tied to performance is the commission-based system. In this system, the agency receives a percentage of the sales or revenue generated as compensation for their performance.
For example, a real estate agent may earn a commission based on the value of the properties they sell. The more properties they sell, the higher their compensation.
Other compensation systems mentioned in the question, such as hourly wage, retainer fee, and fixed salary, do not directly tie agency compensation to performance.