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Compensation: Five Priorities to Manage Sales Force Activity

The original case study:

Two broad goals of a sound compensation plan are:
1) to manage sales force activities and
2) to ensure proper treatment of customers.

Apply relevant information to illustrate the top five priorities when creating the best compensation plan for a sales force.

Solution Preview

The first priority in developing a sound compensation plan for sales personnel is defining the structure. Depending on the type of product or service being sold, and the average volume, organizations may do a "straight" commission or hybrid base with commission. In light of the recent depressed economy, a base with commission may ensure employees are guaranteed some form of compensation - even when customers are not purchasing at volumes seen in good economic times. A "rule of thumb" for base salary ...

Solution Summary

This solution is about 300 words and includes a reference for designing a compensation plan, with ultimate goals of managing sales force activities and also ensuring sound customer service is being provided. The solution provides five priorities any organization should utilize when creating a sound compensation plan that will fulfill these two goals.