Using the results of a survey of 380 companies in 34 industries, this author examines three basic types of compensation plans: salary, commission, and combination (salary plus commission). Most companies in the study favored a combination plan, but such plans have some disadvantages to offset their obvious attractiveness. The author sets out the possible reasons […]
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Any discussion with sales executives would bring forth a consensus that compensation is the most important element in a program for the management and motivation of a field sales force. It can also be the most complex.
A version of this article appeared in the July 1978 issue of Harvard Business Review.
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JS Mr. Steinbrink is editorial director of the Dartnell Corporation and is author of Dartnell’s 18th and 19th Biennial Survey of Compensation of Salesmen. He is a member of the board of advisors and contributors, Journal of Accounting, Auditing and Finance. He was formerly director of Sales and Marketing Executives International, Chicago.
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