Professional Salesmanship: Salesmanship: Its Nature and Rewards
Professional Salesmanship: Salesmanship: Its Nature and Rewards
Professional Salesmanship: Salesmanship: Its Nature and Rewards
1. Straight-salary plan – It is
considered to be the simplest
compensation plan. The salesmen
receive a fix amount at regular intervals
(usually every 15th or end of the month
or weekly) which represents the total
payments for their services.
2. Straight-commission plan – The
theory behind this plan is that the
performance of the salesmen will have to
be measured according to productivity.
3. Combination salary-and-incentive
plan – Almost all sales compensation
plans are combinations of salary plus
commission plan. Here, the salesman
receives a small base salary, but he gets
a larger percentage commissions.
a. Bonus – They are quite different from
commissions. Bonus is defined as an
amount paid for the performance of
specific sales task, a commission
differs in amount taking into
consideration the sales volume and
other commissions as its base.
b. Profit sharing bonus is even better
than any other type of bonuses for it
serves as an incentive for the salesman
to aim high, making them profit
conscious rather than volume
conscious, it minimizes the rate of
turnover of salesmen, eventually
develops a spirit of cooperation and
camaraderie.
Fringe Benefits
Fringe benefits like financial rewards are
considered motivating factors. They
satisfy the security needs of the
salesman. It helps to lessen job
dissatisfaction and serves as an
inspiration for the salesmen to sell more.
As provided by law, fringe benefits
include medical, disability and death
benefits, pensions, insurance,
retirement benefits. Some big
companies give paid vacations, car if
salesman travel often, entertainment
expenses, free hospitalization, and
shares in the company profit.