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Question: Arguably the most sacred of sales management thoughts is that commission systems are explicitly tied to sales results. In recent years, however, perhaps as an outcome of the "everyone is a winner" cultural shift, there is a small but not significant and growing movement towards eliminating commissions from the incentive mix for salespeople. Many pundits argue that commission systems prevent sales, including Harvard Business Review contributor and bestselling author Dan Pink who has written about sales teams that have increased production after dropping sales commissions. Norm Brodsky, a seasoned entrepreneur, Inc. contributor, and author have also been very vocal about the fact that commission systems don't work. Still, there is much research to indicate that sales commission systems absolutely do influence the behavior of salespeople and if designed and applied properly will result in increased sales.
Choose your side - Affirm the topic (Sales commissions don't work) or Negate the topic (sales commissions are essential). Be sure to list the references used.
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