Compensation for Sales Force
There are three basic compensation plans for sales force
1. Only Salary ( No incentives)
2. Only Incentives ( No Salary )
3. Combination of fixed salary and Variable salary componenet (incentives)
Incentives can be monthly, quarterly, bi-annually or yearly. Percentage of variable compnment to the fixed component varies from company to company and nature of sales operations. In creative salesmanship the Variable componenet is highest and in order taking salesmanship, it is the lowest.
Provision of good TA & DA, well designed reward scheme and options for buying stock are other parts of compensations.
Other fringe benefits can also be provided such as company's vehicle, laptop and mobile, family insurance plan, etc.
Prof. Prasanna Shembekar
Asst. Professor, Tirpude Institute of Management Education, Nagpur (India)
http://www.tirpude.edu.in
There are three basic compensation plans for sales force
1. Only Salary ( No incentives)
2. Only Incentives ( No Salary )
3. Combination of fixed salary and Variable salary componenet (incentives)
Incentives can be monthly, quarterly, bi-annually or yearly. Percentage of variable compnment to the fixed component varies from company to company and nature of sales operations. In creative salesmanship the Variable componenet is highest and in order taking salesmanship, it is the lowest.
Provision of good TA & DA, well designed reward scheme and options for buying stock are other parts of compensations.
Other fringe benefits can also be provided such as company's vehicle, laptop and mobile, family insurance plan, etc.
Prof. Prasanna Shembekar
Asst. Professor, Tirpude Institute of Management Education, Nagpur (India)
http://www.tirpude.edu.in
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