Sales force compensation relates to the proportion of fixed

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One decision on sales force compensation relates to the proportion of fixed vs. variable (per performance) pay.

The fixed part of the compensation comes in the form of a salary (does not depend on the sales performance). The variable part can have multiple forms, with the most common one being the commission (where the sales person receives some % of the sales revenue generated).

What are some factors to consider when deciding how much of the sales agent's compensation should come in the form of a salary and how much should be in the form of commissions?

Reference no: EM131176290

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