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* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Total Compensation Architecture Base Salary/Fixed Pay Variable Fixed Target Sales Incentive for Quota Achievement Profit Sharing Recognition Accelerated Incentives for Quota Over-achievement Total Potential Rewards Performance $ Earnings FAT/MBO Stock Options* *Selective use based on position and performance, competency and future growth potential Above quota achievement + = Incentive Schemes For Sales Staff Where it is felt that sales staff need to be motivated by an incentive commission scheme the majority of companies find that the best approach is a basic commission on sales volume or, in more sophisticated firms, on the contribution to fixed costs and profits of the sales of each product group or product. The standard commission is typically set at about one-third of salary to provide a noticeable incentive without adversely affecting feelings of security. A successful sales commission plan should satisfy all the criteria listed above for bonus schemes. But it is particularly necessary to ensure the following: Incentive Schemes For Sales Staff A) The reward is fair in relation to the efforts of the sales representative. This means that attention has to be paid to setting and agreeing realistic and equitable targets, making allowances for special circumstances outside the control of the sales representative which might affect sales, and splitting commission fairly when more than one person has contributed to the sale; B) The scheme directs sales effort in accordance with management’s policy on the product mix and does not encourage the representative to concentrate on what is easiest to sell; C) The scheme does not encourage high pressure selling which results in an unacceptable level of returns, cancellations and complaints; D) The scheme does not encourage repres
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