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    Salesperson compensation

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    Two successful firms are observed with quite different compensation plans for their salespeople. One firm pays its salespeople on a commission basis, whereas the other firm pays its salespeople fixed salaries. Do you think that one of the two companies is making a mistake? What are the pros and cons of each approach?

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    I don't think so any firm in the above mentioned scenarios is making a mistake as there are advantages and disadvantages of each approach and the choice between these two approached will entirely differ from situation to situation.

    The fixed salaries approach is good in a situation wherein a company ...

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    Salesperson compensation