How can the sales executives be compensated?

How can the sales executives be compensated?



The sales executives can be compensated via three methods:

a.Direct Salary : where a fixed amount of salary is paid to the sales executives on a monthly basis.

b.Direct commission: where the salesmen get only commission on every sale they make. Eg.life insurance agents of companies like L.I.C are paid on commission basis.

c.Combined plans: in this method, there is a combination of straight salary and straight commission, so the salesperson gets to enjoy both. Eg. most retail stores companies employ salespeople on salary plus incentives basis. This system also acts as a motivating factor for the sales force.
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