REMUNERATION OF SALESMEN

PRINCIPLES

DEFINE TERMS OF ENGAGEMENT

PUT DOWN IN WRITING TERMS AND CONDITIONS OF

EMPLOYMENT

CLARIFY THE ROLES OF EITHER SIDE

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 REMUNERATION OF SALESMEN

POINTS TO BE COVERED IN AGREEMENT

OBLIGATIONS OF SALESMAN AND EMPLOYER

FUNCTIONS AND DUTIES OF SALESMEN
TERRITORY ASSIGNED TO SALESMEN
REMUNERATION PAYABLE TO SALESMEN
LIMITS OF AUTHORITY
PROVISIONS RELATING TO EXPENSES
CONDITIONS OF TERMINATION

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 METHODS OF
REMUNERATION

SALARY

COMMISSION

EXPENSE ALLOWANCE

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 METHODS OF
REMUNERATION
COMBINATIONS
STRAIGHT SALARY
STRAIGHT COMMISSION ON SALES
SALARY AND COMMISSION ON SALES
SALARY PLUS COMMISSION ON SALES ABOVE A
CERTAIN AMOUNT
SALARY PLUS COMMISSION OF VARYING PERCENTAGE
ON VARYING TOTALS OR DIFFERENT TYPES OF
GOODS
SALARY PLUS A SHARE IN PROFITS

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 ESSENTIALS OF GOOD
REMUNERATION

PERSONAL

SIMPLE TO UNDERSTAND

WITHIN THE REACH OF SALESMAN

PROVIDE CONTINUOUS INCENTIVE

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 QUOTAS AND BONUS

FIX A PARTICULAR QUOTA

ENSURE SALESMAN ACHIEVES THIS

QUOTA

AWARD BONUS IF QUOTA IS

EXCEEDED
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 QUOTAS AND BONUS
BONUS FOR SPECIAL ACHIEVEMENTS
OPENING NEW ACCOUNTS
SELLING SPECIAL ITEMS
MAKING COLLECTIONS
STAGING DEMONSTRATIONS
SETTING UP WINDOW DISPLAYS
CUTTING DOWN EXPENSES OF SELLING

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 SPECIAL SCHEMES
SALES CONTESTS AND PRIZES
SPECIAL PAYMENTS FOR SALES OPERATIONS
PROFIT SHARING
FRINGE BENEFITS
ALLOWANCES FOR TRAVELLING ,
ENTERTAINMENT

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 COMPENSATION PLAN
PRINCIPAL OBJECTIVES
TO PROVIDE
AN ADEQUATE INCOME FOR
ACCEPTABLE WORK
A SENSE OF SECURITY
INCENTIVES TO INDUCE EFFORTS
ECONOMY

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 NON FINANCIAL INCENTIVES

MOTIVATION IN THE FORM OF

NON – FINANCIAL OR PSYCHIC
WAGES IS THE NEED OF THE HOUR

WHY ?

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 NON FINANCIAL INCENTIVES
NEEDS OF SALESMAN
DESIRE FOR STATUS OUTSIDE THE
COMPANY
DESIRE FOR PERSONAL RECOGNITION IN
THE COMPANY ITSELF
DESIRE TO EXCEL
DESIRE TO DO GOOD WORK

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 NON FINANCIAL INCENTIVES
METHODS OF PAYING PSYCHIC WAGES
PROMOTE SALESMAN AS MANAGER OR TRAINER
RESPECT THEIR PERSONAL EGO
BUILD A SENSE OF BELONGING
MOTIVATE THROUGH PARTICIPATION
OFFER CHANCE TO PROGRESS AND ADVANCEMENT
DEMONSTRATE BENEFITS OF TRAINING
PROVIDE EMOTIONAL SECURITY

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 NON FINANCIAL INCENTIVES

FORMS OF STIMULATION

SALES CONTESTS

SALES BULLETINS

CONFERENCES
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 DEVELOPING AND MAINTAINING
MORALE
YOUR COMPANY GIVES YOU
TRAINING – INITIAL & CONTINUOUS
SALES MANUAL
SALES BULLETINS
ADEQUATE COMPENSATIONS &
INCENTIVES
JOB SECURITY
RECOGNITION
OPPORTUNITY
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 DEVELOPING AND MAINTAINING
MORALE
OBJECTIVES AND MOTIVES

SECURITY

RECOGNITION

OPPORTUNITY

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 DEVELOPING AND MAINTAINING
MORALE
FREEDOM FROM CARE AND APPREHENSION

FREEDOM FROM FEAR OF LOSING JOB

ASSURANCE OF REASONABLY REGULAR MINIMUM WAGE

WOULD LEAD A SALESMAN TO DO A BETTER JOB

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 DEVELOPING AND MAINTAINING
MORALE

A DESIRE FOR RECOGNITION

AND

APPROVAL IS PRESENT IN
EVERY ONE

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 DEVELOPING AND MAINTAINING
MORALE
PRAISE OF SALESMAN WHEN IT IS DUE
LEADS TO

HUGE SATISFACTION &

SENSE OF ACHIEVEMENT

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 DEVELOPING AND MAINTAINING
MORALE
NOT CONSULTING SALESMEN
BEFORE TAKING DECISIONS
AFFECTING THEIR INTEREST
MIGHT RESULT INTO :

RESENTMENT AND
LOWERING OF MORALE
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 CONCLUSION

DEVELOP A PROPER

ATTITUDE AMONG SALESMAN

MAINTAIN THEIR MORALE

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