Your customer's buying cycle is approximately 2 years and your reps need to invest significant amounts of time understanding their customers. Your ultimate goal is to control selling expense and provide extra rewards for added results. Based on this information, which salesperson compensation plan would work best?

Question

Quizplus · Accepted Answer

A salary plus year-end bonus plan would work best in this scenario as it provides stability to the salesperson while also incentivizing them to achieve added results with the year-end bonus. Commission-only and bonus-only plans may not be effective in this case as the buying cycle is quite long, and it may take a while for sales to close. A straight salary or a salary plus monthly commission plan may not provide sufficient motivation for the salesperson to go above and beyond, leading to lower results.

Your Customer's Buying Cycle Is Approximately 2 Years and Your