The most important and most difficult part of sales compensation is _____.

Question

Quizplus · Accepted Answer

Setting sales quotas is the most important and difficult part of sales compensation as it determines the target that sales representatives must achieve to earn their commission and bonuses. Quotas must be challenging but achievable, and they should be based on past performance, market trends, and sales forecast data. Quota setting requires a balancing act between motivating sales reps and keeping company costs under control. Commission rates and bonuses depend on quotas, so they are secondary to quota setting. Assessing differences in sales territories is also important, but it is not as challenging as quota setting.

The Most Important and Most Difficult Part of Sales Compensation