ABSTRACT
This chapter provides an overview of key issues related to compensating salespeople, including the types of compensation and especially incentive forms of compensation available and when to offer each. It also provides insight into effective salesperson performance evaluation, which should be a process that provides a forum for constructive dialogue between a salesperson and the sales manager, focused on future professional development and performance success. To successfully execute a performance review, sales managers must have a strong working knowledge of different measures of performance that are appropriate to a particular selling situation. Then they must conduct the appraisal in a positive and constructive manner that allows the salesperson to build on current strengths and proficiencies and make performance improvements where warranted.
