The most frequently used type of compensation plan for salespeople is a ________
Blank
compensation plan.

Question

The most frequently used type of compensation plan for salespeople is a ________
Blank
 compensation plan.

BlackTom AI · Accepted Answer

To tackle the question, I’ll evaluate what each compensation plan implies for salespeople and how common it is in practice.
Option 1: combination. A combination plan blends elements of base pay with incentives, allowing steady earnings while still rewarding performance. This approach is widely used because it balances risk and motivation, appealing to both the seller and the company. Given its prevalence in many industries, this option is consistent with common compensation strategies.
Option 2: straight salary. A straight salary provides fixed pay regardless of sales results. While it offers income stability, it often lacks strong incentives for higher performance, which makes it less common as the sole plan for sales roles that rely on motivation to drive sales. It is also generally less flexible for aligning pay with results.
Option 3: weighted. The term “weighted” could refer to a plan where commissions or bonuses weigh more heavily on certain products, regions, or outcomes. While weighting can be a feature of incentive plans, as a standalone description it is not commonly cited as the standard or most frequently used overall plan type for salespeople.
Option 4: market share. A market share-based plan would tie compensation to a salesperson’s ability to capture or increase market share. This is a specialized objective and not the typical default for most salesforces, as it can be difficult to measure and may not align with all sales contexts. Therefore, it is unlikely to be the most frequently used plan.
Option 5: straight commission. A straight commission plan pays only based on sales made, with no base salary. While commissions strongly incentivize performance, this structure can be financially risky for reps and may deter recruitment, so it is not the most common comprehensive approach for all sales roles, though it is popular in some sectors.
Overall, when considering typical sales compensation practices across industries, a combination plan emerges as the most prevalent because it provides a balanced mix of guaranteed earnings and performance-based incentives, addressing both earnings stability and motivational needs. The other options describe valid components or alternatives but do not match the general, widely adopted standard as closely as a combination plan does.

The most frequently used type of compensation plan for salespeople is a ________ Blank compensation plan.

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