With a ________
Blank
, a salesperson's earnings are directly tied to sales or profits generated.

Question

BlackTom AI · Accepted Answer

The prompt presents a fill-in-the-blank about a salesperson's earnings structure and asks which term completes the sentence: "With a ________, a salesperson's earnings are directly tied to sales or profits generated."

Option A: "sales response compensation plan" — This term is not a standard or commonly used descriptor for compensation plans in sales. It doesn't clearly convey that earnings depend on actual sales outcomes, making it an unlikely choice.

Option B: "combination compensation plan" — While some compensation schemes may be blends of salary, commission, and bonuses, the phrase itself does not inherently mean earnings are solely tied to sales or profits. It’s too generic and could imply multiple components beyond direct sales results.

Option C: "straight sales compensation plan" — This wording is uncommon and vague. It could be interpreted as a plan related to sales activities, but it does not explicitly communicate that earnings are directly tied to sales or profits in a straightforward way.

Option D: "straight commission compensation plan" — This is a well-established term in sales compensation. A straight commission plan means earnings come directly from commissions on sales, with little to no base salary, so pay is directly tied to the value of sales or profits generated. This aligns precisely with the description in the question.

Option E: "market share compensation plan" — This would imply compensation is based on market share metrics rather than direct sales or profits. It focuses on competitive position rather than the direct revenue generated by the salesperson's own sales activities, so it does not match the stated idea.

In summary, the term that best fits the definition—earnings directly tied to sales or profits generated—is the straight commission compensation plan, while the other options either describe different, less direct, or non-standard approaches to compensation.

With a ________ Blank , a salesperson's earnings are directly tied to sales or profits generated.

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