CHAPTER 11
Salesperson Compensation and Incentives
LEARNING OBJECTIVES
This chapter provides an overview of key issues related to compensating salespeople. The key issues to understand involve the types of compensation available (especially incentive forms of compensation), and when each might be most effectively offered.
After reading this chapter, you should be able to:
- Discuss the advantages and limitations of straight salary, straight commission, and combination plans.
- Explain how and why a bonus component to compensation might be used as an incentive.
- Understand the effective use of sales contests, as well as the potential pitfalls of their use.
- Identify key nonfinancial rewards, and how and why they might be important.
- Recognize key ...
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