What is the main benefit of paying salespeople a combination of salary and commission?
A) limiting the firm's risk of overly high commissions
B) aligning employee goals and company strategy
C) providing simple salary administration
D) clearly linking pay with performance

Question

Quizplus · Accepted Answer

Most companies pay salespeople a combination of salary and commissions. Such plans cushion the salesperson's downside risk (of earning nothing), while limiting the risk that the commissions could get out of hand from the firm's point of view. However, the plans are more complex to administer than straight commission.

What Is the Main Benefit of Paying Salespeople a Combination