The document discusses considerations for developing a sales compensation plan. It outlines steps to define the sales job, consider industry compensation patterns, determine compensation levels, include various elements, address special company needs, consult the current sales force, write and test the plan, revise it, then implement and follow up on the plan. The document also discusses different types of compensation plans including straight salary, straight commission, and salary plus commission plans. It closes by mentioning relating compensation to a product's life cycle, demographics, bonuses, and fringe benefits.

1. Dr.Gopal Thapa
Nepal Commerce Campus

2.  . It provides a living wage in the form of a secured income.
 The plan fits with the rest of the motivational program.
 The plan is fair – it does not penalize sales personnel because of factors
beyond their control.
 Sales personnel receive equal pay for equal performance.
 It is easy for sales personnel to understand – they are able to calculate
their own earnings.
 The plan adjusts pay to changes in performance.
 It is economical to administer.
 It helps in attaining the objectives of the sales organisation.
Dr. Gopal Thapa, Tribhuvan University 2

3.  Defining a Sales Job
 Consider the Company's General Compensation Structure
 Consider the Compensation Patterns in Community and Industry
 Determining Compensation Level
 Provide for the Various Compensation Elements
 Special Company Needs and Problems
 Consult the Present Sales Force
 Reduce Tentative Plan to Writing and Pre-test it
 Revise the Plan
 Implement the Plan and Provide for Follow up
Dr. Gopal Thapa, Tribhuvan University 3

4.  Straight Salary Plan
 Straight Commission Plan
 Salary Plus Commission
Dr. Gopal Thapa, Tribhuvan University 4

5.  Relation with Product Life Cycle
 Compensation Related with Demographic Characteristics
 Use of Bonus
 Fringe Benefits
Dr. Gopal Thapa, Tribhuvan University 5

6.  Relation with Product Life Cycle
 Compensation Related with Demographic Characteristics
 Use of Bonus
 Fringe Benefits
Dr. Gopal Thapa, Tribhuvan University 5