A typical schedule charges 5% if sold in year one, falling by a point a year to nothing after year five or six. The distributor is paid up front by the fund sponsor, and the deferred charge recovers that advance if the investor leaves early.
Because nothing is deducted at purchase, these classes look cheaper than front-loaded ones. They usually compensate with a higher ongoing twelve-b-one-fee, so total cost over a full holding period can be greater.
Distinguish a sales load from a redemption fee paid back into the fund. The latter, often 1% to 2% on holdings sold within 30 to 90 days, exists to protect remaining holders from the trading costs of short-term money and goes to the fund, not a salesperson.
Related: front-end-load, twelve-b-one-fee, no-load-fund, total-expense-ratio, fee-drag