All tagged Variable Pay

Unintended Consequences of 100% Commission - Part 3

Beth Carroll

Many industries have gone through or are going through a shift from a 100% commission model to a salary + commission or salary + bonus approach for their sales reps. The latest industry to feel this shake up is Food & Beverage Shipping and Distribution (F&B) as more and more of the big players have incorporated or are considering incorporating some kind of salary component to their sales compensation plan. The final part of this 3 part series continues to explore the unintended consequences the 100% commission model has had on the F&B industry, as well as how to correct them.

Unintended Consequences of 100% Commission - Part 2

Beth Carroll

Many industries have gone through or are going through a shift from a 100% commission model to a salary + commission or salary + bonus approach for their sales reps. The latest industry to feel this shake up is Food & Beverage Shipping and Distribution (F&B) as more and more of the big players have incorporated or are considering incorporating some kind of salary component to their sales compensation plan. Part 2 of this 3 part series continues to explore the unintended consequences the 100% commission model has had on the F&B industry, as well as how to correct them.

Unintended Consequences of 100% Commission - Part 1

Beth Carroll

Many industries have gone through or are going through a shift from a 100% commission model to a salary + commission or salary + bonus approach for their sales reps. The latest industry to feel this shake up is Food & Beverage Shipping and Distribution (F&B) as more and more of the big players have incorporated or are considering incorporating some kind of salary component to their sales compensation plan. This 3 part series explores the unintended consequences the 100% commission model has had on the F&B industry, as well as how to correct them.

Why 100% Variable Pay Often Produces Undesirable Results

Beth Carroll

Many sales leaders and CFOs believe paying company sales representatives as if they were agents (100 percent variable pay) strengthens alignment between a company’s objectives and sales representatives’ focus and results; however, the absence of a base salary often has an adverse effect with significant unintended consequences: Lack of Control, Complacency, and Limited Flexibility.

Motivation & Morale On A Tight Budget

Beth Carroll

One approach some Transportation & Logistics companies took for dealing with the recession was to eliminate incentives or cash compensation and revert to a 100% salary approach, which gave them the ability to manage a fixed cost of compensation and deal with productivity and staffing from a purely 1:1 perspective (if the person wasn't generating enough to justify their salary, they didn't tend to stay around very long). This is not a position that can be (or should be) maintained for long in this industry as there is too much bottom line impact that the truck finders, brokers, customer service reps, account managers, and sales reps have on the business.