Tag Archives: Salary Plus Commission

Car Salesmen and their Commissions

Easy-CommissionSelling cars isn’t easy. Cars aren’t cheap and not a lot of people can afford to buy a new one so a sales rep has to really earn the commission paid to them.

That’s one of the main reasons you get swarmed by car salesmen the moment you set foot in a car dealership. Continue reading

Retailer J.C. Penney Goes Back to Commission Plans for Future Growth

J.C Penney announced this week the closing of 33 stores nationwide in order to turnaround the company.    Part of the new strategy is to re-implement commission plans per company spokeswoman Ann Marie Bishop “for its salespeople in the window coverings, furniture and fine jewelry departments”.   She further commented in an email to the LA Times “Offering a competitive salary base that includes a commission incentive not only helps in retaining some of our best sales associates, it motivates them to build and maintain stronger customer relationships.” J.C. Penny is reversing a sales strategy that eliminated commission plans and discount programs under former CEO Ron Johnson who was previously with Apple. Continue reading

100% Sales Commission Plans – Is It the Right Thing to Do?

Some companies are faced with the question of whether a 100% commission plan is the best commission plan design for them. There is clear benefit of tying the costs completely to sales and reducing risk to the company.  But  they wonder if it will attract quality sales people to their firm. Will it allow the sales people to focus on the right deals that may take longer to come to fruition versus focussing on the short term deals? Will it mean a rush to close deals with poor terms or by discounting excessively? Continue reading