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Isn't that an argument not to pay based on deals won? Doesn't that make it a random or unpredictable reward structure, and therefore not very effective?
by calinet6 9y ago
Isn't that an argument not to pay based on deals won? Doesn't that make it a random or unpredictable reward structure, and therefore not very effective?
- ericfrenkiel 9y agoIt really depends on the type of business - if it's a high-volume business, then your proposal is often used by sales organizations. You might call this an "order taking" business - low ASP (average sales price), simple product, etc. For a low-volume business with high ASP, it's typically a complex product that takes longer to close which introduces some degree of unpredictability, and so a business must compensate the individual with a reward (commission) program reflective of that.