Companies are increasingly moving away from high commission compensation plans because such plans often lead to salespeople ________.

Question

BlackTom AI · Accepted Answer

The question asks about the consequence of high commission compensation plans in many firms. 
Option 1: 'being too pushy and harming customer relationships' This aligns with common criticisms of high-commission models: salespeople may focus on closing deals at any cost, pressuring customers, and neglecting long-term relationships, which can erode trust and satisfaction.
Option 2: 'spending too much time traveling between customers' While travel time can be a factor in sales roles, it is not a direct, inherent consequence of high commissions. Commissions influence behavior around selling rather than necessarily increasing travel time.
Option 3: 'working multiple sales jobs to maximize their income' Although high commissions could incentivize seeking more opportunities, this behavior is less about the compensation plan's effect on current customer interactions and more about individual career strategies; it is not the primary reason companies rethink commissions.
Option 4: 'undermining the work of the inside sales team' This could occur if external reps disruptInside sales processes, but the core critique of high-commission structures is typically about aggressive selling and relationship damage, not about internal team dynamics per se.
Option 5: 'ignoring management and marketing objectives' While some reps might prioritize their own commissions over broader aims, the standard reasoning emphasizes customer relationship costs and pressure tactics rather than outright neglect of organizational objectives.
In summary, option 1 directly captures the widely cited drawback of high-commission plans—salespeople may become too forceful, risking customer trust and long-term relationships, which is precisely what many companies aim to mitigate by adjusting compensation structures.

MKTG1199 Module 10: Wrap-Up

Companies are increasingly moving away from high commission compensation plans because such plans often lead to salespeople ________.

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