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A- Which compensation method will motivate specific selling activities?
B- How much of a salesperson's compensation should be incentive based?
C- What mix of financial incentives will motivate the sales force?
D- What mix of nonfinancial incentives will motivate the sales force?
E- All of the above
The first question to ask is what do I as an organization want to achieve. For example if its a starting up company they would want to build a base of buyers and loyal sales person, so they might concentrate the package on benefits and fixed rates then gradually increase into the variable pay elements. Other wise for a logo owner with good customer base, they would want to attract the best in the market to develop above the saturated levels so they increase the variable pay and maybe the extra aspired for benefits to attract creative and exceptional skills. If they are targeting expatriates, that is a different story line for the package. The bottom line is as a compensation specialist you start from the company and sales goals, what do you want to achieve and how to drive the compensation package to arrive at the required destination.
