Compensating sales personnel

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