Requirements of a good sales compensation plan

Requirements of a good sales compensation plan

1. It provides a living wage in e form of a secure income.
2. A good compensation plan must fit with the rest of the motivational program.
3. The plan should be fair, sales personnel should receive equal pay for equal performance.
4. The plan should be easy for sales personnel to understand so that they may calculate their own earnings.
5. The plan should adjust pay to changes in performance.
6. The plan should be economical to administered.
7. The plan should help in attaining the objectives of the sales organisation.