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A good sales commission is better and I suggest that the sales commission to be based on the team performance rather than persons.
Rather than choosing one , the mixed or combination approach would be great.
If only basic salary is given there will be less motivation to hit the targets or complete work properly . While in case of only comission based model , insecurity may be developed. Best can be having fixed basic salary and getting comission on results.
I differ from Mohammad because it depends from Industry to Industry if you are working in Insurance field then surely Salary doesnt matter and its purely based on commission and attrition rates are also high there. But if someone has a family and commitments he will think twice just to work on commissions i am not questioning anyone performance or honesty but god forebidden if market is not favourable that month he will go home with less amount and it will effect his confidence next month personal issues mounting up i am thinking with puttng my self in that person shoes.
If there is salary and also commission then you get surely get better out of the person for sure.
You can never pick one of the things out. That's a laughable mistake. The first thing about basic salary is that it is regardless of your sales performance. Keeping that in mind, do not settle for a minimal basic salary cause sometimes when you can't perform you'd ending being broke.
Next, having a commission is also very important because it gives you an open ended opporunity to earn and grow.
The thing about it is to have a healthy combination of both. A basic of4k +3% is way better than a basic of2k +5%. :-) At the same time both of these are way better than just a basic of6k. :-|
Regards.
Basic Salary is the part of each employee's salary and other allowances are paid as %age of it; whereas commission is one time payment. Therefore I would prefer increase in basic salary
