For 10 years now, the combination plan (base salary plus incentive) has reigned supreme. But among companies with $5 million to $25 million in revenues, the use of combination plans dropped 18 percentage points, from 82% two years ago; the use of "straight salary" rose 10 points. The smallest companies still make the most use of incentive-only (commission) plans to pay their sales force.*
* * * Percentage of companies using:
Companies with Straight Incentive Combination
revenues of: salary only plan**
Less than $5 million 20.8% 18.1% 61.1%
$5 mil. - $25 mil. 24.5 11.0 64.5
$25 mil. - $100 mil. 13.9 10.6 75.5
$100 mil. - $250 mil. 13.8 -- 86.3
More than $250 million 13.3 11.2 75.4
Overall 19.4 13.1 67.5
* * **Senior, intermediate, and entry-level sales reps
**Includes companies that use all three plans
Source: "Sales Force Compensation," a survey of U.S. companies, 66% with sales of less than $25 million, the Dartnell Corp., Chicago, 1992.