Most companies use a ________ when setting up their sales compensation plan.
A) straight commission plan
B) combination plan
C) straight salary plan
D) gainsharing plan

Question

Quizplus · Accepted Answer

Most companies use a combination plan when setting up their sales compensation plan, which includes a base salary and a commission or bonus component. This allows for a balance between stable income for the salesperson and incentivizing them to exceed their sales targets. Straight commission plans can be too risky for the salesperson, while straight salary plans do not provide enough incentive for high performance. Gainsharing plans are typically used for non-sales roles, where all employees in a team or department share in the success of reaching a specific goal.

Most Companies Use a ________ When Setting Up Their Sales