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Commission Sales Vs Salary Sales

In the sales industry, one of the hottest topics of discussion is commission sales versus salary sales. There are benefits to using both, but many people are strong advocates of one or the other. Some people believe that commission is the only way of payment for real sellers, while others would like to see a balance between the two. If you’re trying to figure out which payment method to use at your company, there are things to consider. However, when it comes down to it, it’s really a matter of preference. Although both have advantages and disadvantages, they are quite equal.

When discussing commission sales versus salary sales, it’s important to consider your employees. Would they be offended if you only offered them commission? Some people take this as a sign that you don’t want to pay them the money they deserve. People may be afraid to sign with your company because they won’t make enough money. On the other hand, there are some people who find commission sales a challenge. They need to close as many deals as they can in order to get paid. They do not find it stressful or worrying, but rather a competition to see how well they can perform.

If you choose salary sales in the commission sales vs. salary sales debate, you may have more people join your company. They see this as a kind of guarantee that they will get some kind of payment. Even if the pay is low, it can be enough to sway employees. When using salary in sales, it is important to have a good balance between salary and commission. Many companies that offer salaries to salespeople also offer them commission if they exceed their quota. How much are you willing to pay exceptional employees? You have to consider all angles.

When you think about commission sales vs. salary sales from a business owner’s perspective, it can be tempting to offer commission especially in the current economic recession. You can use it as an area in which you can save money. Although this is tempting, you still need to consider the needs and wants of your employees. If most of your employees would prefer to have a salary and commission, it is a good idea to agree on a common source. If your employees are old-school salespeople, they’ll probably work on commission only. Ask your employees what they would prefer. It also lets them know that you actually care about their thoughts and feelings.

There is no right answer to the commission sales vs. salary sales debate because every company is different. Its employees may strongly prefer one over the other. If so, go with what the masses want. If you are only concerned about what your company can afford, then you should consider how much it would cost your company to use both methods and choose the one that is more economical.

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