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Is it wise to have an uncapped commission structure to sales?

Sales people may work very hard to achieve their targets, they usually get commission upon their achievements. The higher they achieve, the more commission they get. Is there a limit?

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Question ajoutée par Ibrahim Hussein Mayaleh , Sales & Business Consultant and Trainer , Self-employed
Date de publication: 2014/08/12
Muthaiya Su
par Muthaiya Su , Credit Manager , UDYAM FINANCE

Yes there is a limit. Eventhough the target is achieved by individual performance, the company has to pay the salesman wich will be minor loss to company. In general, if there is cap for commission means company will get more profit 

Felix Balaccua
par Felix Balaccua , General Manager , Superhawk Logistics, Inc

Not wise.

 

Commissions will always have to be capped.

Muhammad Masood
par Muhammad Masood , Regional Director Sales , TCS (Pvt) Ltd

depends upon the market, product & potential however most of the times, it is capped

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