Selling Today: Partnering to Create Value, 14/e
by Gerald L. Manning, Michael Ahearne, Barry L. Reece
Compensation Plans
17.6 Develop an understanding of selected compensation plans
Compensation plans for salespeople combine direct monetary payments (salary and commissions) and indirect monetary payments such as paid vacations, pensions, and insurance plans. Compensation practices vary greatly throughout the field of selling. Furthermore, sales managers are constantly searching for the “perfect” sales force compensation plan.40 Of course, the perfect plan does not exist. Each plan must be chosen to suit the specific type of selling job, the objectives of the firm’s marketing program, and the type of customer served.
As noted in Chapter 1, the highest amount of total compensation is earned by salespeople who are involved in value-added selling. ...
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