My sales team is on an incentivized pay system. Should I offer the same commission rate for every type of product?
If there is a significant difference in the profitability of your core bread-and-butter offerings and that of smaller markets like promotional products, be certain not to pay the same commission rate on sales of both. Have one commission rate for high-profit goods and another for lower ones.
However, it is important to impress upon your sales team the reasons you are offering those lower-profit goods – one of them being to improve the sales revenue stream for your business. Failing to do so may result in a lack of motivation to push those items.
-Vince DiCecco, Your Personal Business Trainer
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