ABSTRACT
Formulating a suitable financial plan for compensating salespeople is important, difficult, and highly troublesome. Moreover, because there are wide differences in the amount paid to the selling force and the types of payment plans used in various industries, the sales manager must decide what type of compensation will best help the company to reach its specific objectives as well as bring average earnings to the desired level. Will this plan offer stability and security in earnings for the salespeople or should the firm control its selling costs?
