With a regressive commission plan,commission rates decrease as total sales increase.

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With regressive plans, commission rates decrease as sales increase, such as paying 12 percent on the first $100,000 and 10 percent on sales over that amount. The regressive system is used to help place an upper limit on a salesperson's earnings to encourage top producers to accept management positions if they want to increase their earnings beyond the level attainable in a sales job.

With a Regressive Commission Plan,commission Rates Decrease as Total Sales