How to Pay Your Sales Force

Using the results of a survey of 380 companies in 34 industries, this author examines three basic types of compensation plans: salary, commission, and combination (salary plus commission). Most companies in the study favored a combination plan, but such plans have some disadvantages to offset their obvious attractiveness. The author sets out the possible reasons […]

by

John P. Steinbrink

by

John P. Steinbrink

From the Magazine (July 1978)

Any discussion with sales executives would bring forth a consensus that compensation is the most important element in a program for the management and motivation of a field sales force. It can also be the most complex.

A version of this article appeared in the July 1978 issue of Harvard Business Review.

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JS

Mr. Steinbrink is editorial director of the Dartnell Corporation and is author of Dartnell’s 18th and 19th Biennial Survey of Compensation of Salesmen. He is a member of the board of advisors and contributors, Journal of Accounting, Auditing and Finance. He was formerly director of Sales and Marketing Executives International, Chicago.

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Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Leading People. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.

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How to Pay Your Sales Force

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