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The Complete Idiot's Guide to MBA Basics, 3rd Edition by Tom Gorman

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Compensating and Motivating Your Sales Force

We look at the issues of compensating and motivating salespeople together because most salespeople are heavily motivated by money. Their compensation has to reflect this.
 
Salespeople can be compensated by straight commission, straight salary, or salary plus commission. Salespeople on straight commission are paid a percentage of the amount of each sale they make. They are paid only their commission; they get no salary, although they may receive a draw (advance against future sales). Salespeople on straight salary receive a salary but no additional commission based on sales. Salespeople on salary plus commission get paid a base salary (also called the “base”) plus some percentage of the sale. Benefits ...

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