Which is the compensation plan best suited for salespersons in a small business?

Question

Quizplus · Accepted Answer

A straight salary plan may not incentivize salespersons to put in extra effort or increase sales, while a strictly commissions-on-sales plan may lead to inconsistent earnings and financial instability for the salespersons. A combination of salary and commissions is a good middle ground, with the salary providing a stable base income and the commissions providing an incentive to increase sales. In small businesses, it may be more feasible to allocate a larger portion of the compensation as a salary rather than strictly relying on commissions.

Which Is the Compensation Plan Best Suited for Salespersons in a Small