There are several compensation methods used in sales organizations. It is important to design the plan to satisfy several “entities”. Not only do the salespeople need to be satisfied, the plan should meet the company’s objectives and needs as well as be competitive in the industry. And, finally, the right plan drives the right kind of behavior.
On Pages 303-312, your author describes various compensation plans. They are: (1) straight salary, (2) straight commission, (3) salary plus bonus, (4) salary plus commission, (5) salary plus commission plus bonus and (6) commission plus bonus.
Create a table with each of these plans down the left side. Across the top, label each column this way: (1) Description, (2) Advantages, (3) Limitations, and (4) Examples. Fill in each square with the appropriate information.