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| Author: | Cespedes, F. V. |
| Title: | A preface to payment: designing a sales compensation plan |
| Journal: | Sloan Management Review
1990 : VOL. 32:1, p. 59-69 |
| Index terms: | SALES SALARY STRUCTURE COMPENSATION SALES MANAGEMENT |
| Language: | eng |
| Abstract: | Sales compensation is a crucial management decision, but it is too often approached as an exercise in comparative pay levels or as a debate concerning the relative merits of fixed-salary versus commission systems. Generic issues and choices implicated in designing a sales compensation plan are outlined. The following points are discussed: 1. the links between compensation, evaluation and motivation; 2. an analytical process helpful in developing a compensation plan; 3. important choices in setting goals and rewarding results in sales; and 4. the relevance and limits of compensation policies within an effective sales management system. |
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