Eight Key Sales Compensation Terms and Definitions

Whether you are dealing with a current sales job that has a change in responsibilities or a completely new sales job, a sales compensation plan design requires you to make decisions about a number of key elements. Managers frequently debate sales compensation plan practices because there is no common understanding of what plan terms mean or how to apply the various terms and plan mechanics to particular sales situations. We believe it is helpful for top managers to understand plan elements, their key terms and definitions. The following are the eight most important features of any plan design (see Appendix A for a more complete glossary of terms related to compensating new sales roles).

  1. Eligibility ...

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