A ____ approach for compensating sales staff is useful when serving and retaining existing client accounts is significantly more important than generating new sales and accounts.
A) straight commission
B) salary-only
C) salary plus commission
D) salary draw

Question

Quizplus · Accepted Answer

A salary-only approach ensures that the sales staff is focused on maintaining and serving existing client accounts rather than solely focusing on generating new sales and accounts. Commission-based pay structures can encourage employees to prioritize new sales over client retention, which may not be the best approach for certain businesses. A salary draw or salary plus commission approach may also incentivize employees to prioritize new sales over client retention.

A ____ Approach for Compensating Sales Staff Is Useful When