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How Do You Pay Your Sales Force?

Chart illustrating compensation methods of companies.
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Today many companies prefer to pay their sales forces a combination of salary and incentives. But according to The Dartnell Corp., straight commission is still in vogue among the smallest companies, those with $1 million to $2 million in sales.

Percentage of companies using:
Company
Straight Combination Straight

sales (mil.) salary plan commission

less than $5 18.9% 62.6% 18.5%

$5 - $25 14.2% 82.0% 3.9%

$25 - $100 14.1% 78.8% 7.1%

$100 - $250 10.3% 86.3% 3.5%

more than $250 14.0% 84.5% 1.5%

Overall 14.8% 77.7% 7.5%

Source: "Twenty-sixth Survey of Sales Force Compensation," a survey of U.S. companies, 72.3% sales less than $50 million. The Dartnell Corp., Chicago, 1990.




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