Question

e. Describe the methods you would use to pay and motivate sales people to sell this product. Would you use sales quotas or a particular type of commission structure? Why or why not? (1-5 sentences. 2.0 points)

Answer 1

I would use progressive commission sales, for example:

number of units sold sales commission

0 - 200 2%

201 - 400 2.5%

401 - 600 3%

601 - 800 3.5%

801 - 1,000 4%

This way, salespeople will be motivated to sell more units, since they know that their income will increase dramatically as there sales volume increases.