Why sales-compensation caps are a major mistake

10/5/2011 | BNET

Companies shouldn't cap the commissions earned by their top salespeople; in fact, they can afford to pay them more, writes Jeff Haden. "Incremental sales are more profitable because they are only offset by direct variable costs: product costs, shipping, sales commissions, etc.," he writes. Businesses should eliminate the "arbitrary constraints" on their compensation packages, he argues.

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