You will hear a lecture. After listening to the lecture, in 10 seconds, please speak into the microphone and retell what you have just heard from the lecture in your own words. You will have 40 seconds to give your response.
The lecture is introducing salary, commission and combination plans. The salary plan is a type of structure that you pay your sales people fixed salary with no bonus and commission. These plans are not very common because it is hard to motivate high level salesperson. The commission plan is to pay your sales people in direct proportion to sales and nothing else. These plans can attract top-performing and hardest working sales professionals but bring negative effects to the other sales team members. The combination plan is a salary plus commission plan offers both motivation and stability to sales people. Though it can be more complex to administer, it is the most common plan used today.