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Employee compensation: Detail sales incentive plans

June 22, 2012Ana McGary

A. Sales employees have a direct and measurable impact on the company's bottom line profit; thus, pay structures for sales employees are typically represented in the form of total target compensation rather than a fixed salary.Elements of a sales plan can be classified into fixed and incentive based. Total compensation may consist of either a commission-only or base salary plus commission component. Businesses selling high value services or products usually opt for a ratio of between 60%/40% and...

Incentives, sales compensation