Chapter 12 Sumamry

Sales Commissions
Concept:
Commission is where a sales person receives a percentage of the value of the sale. So if a car salesman sales a car and gets 6 percent times the car, that amount will be added to his pay. Some people earn 100 percent commission and others receive a base pay with a lower percentage of the sale. When a salesperson makes 100 percent commission it is known as getting a “straight commission”, this is common in real estate and car sales. Paying most or all of the sales person’s wages from commission encourages the salesperson to focus on the sale instead of building customer relations. Commission sales are not for everyone. This type of position requires a person to be very dedicated and driven in order to make money. It is important for a salesperson to be hard-working, ambitious, and a risk taker. For a person who feels they fit this model of a salesperson straight commission would be a great position for them.
Emotional Hook:
For a person who is very driven by creating their own success , commission sales might be a great opportunity for them to make a lot of money. Being paid on commission allows the salesperson to more or less control their own financial situation when the economic situation is removed from the scenario.
Key Points:
A sales person can make a very good living when working for a straight or partial commission. This also puts the company in a nice position because when they have a hard-working, ambitious employee it raises the companies sales and increases profits.
Facilitative Question:What could be some of the down falls to a company and to the employees that work off commission?