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CompensationMaster Newsletter Article See how much you know about sales force compensation—take the
following 10-question quiz. Answers are given at the end, with a link to a page
with explanations.
1. The only information you need to design a good sales force
compensation plan is what your competition is paying.A. True
B. False
2. If a company similar to yours is getting spectacular results
from a new commission plan it makes sense for you to try it too.
A. True
B. False
3. It is better to set up compensation plans so sales
associates are paid when they make the sale, as opposed to paying them when the
company receives payment.
A. True
B. False
4. The biggest concern managers have about changing
compensation plans is that sales representatives will leave.
A. True
B. False
5. The main reason sales people quit is that they find a
better-paying job.
A. True
B. False
6. Most sales people would prefer to have a choice of
compensation plans.
A. True
B. False
7. The benefits of offering sales people a choice of
compensation plans include a lowering of the company's breakeven point and an
increase in the number of people
who will be interested in working for the company.
A. True
B. False
8. When managers are paid a bonus based on revenue, the best
revenue figure to use is total revenue.
A. True
B. False
9. Firms that have invested heavily in technology to make their
sales force more productive often see an increase in revenue in the first year
and a decrease in profitability in the second year. This problem can be fixed
by revising the company's sales force compensation plans.
A. True
B. False
10. It is possible to design compensation plans that treat each
member of the sales force as a separate profit center.
A. True
B. False
Answers: 1-B; 2-B; 3-B; 4-A; 5-B; 6-A; 7-A; 8-B; 9-A; 10-A
For an explanation of each answer, visit
http://www.compensationmaster.com/compiq.html
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