Part 3: When Two Is Better Than One
The May edition of 3PL Perspectives contains part 3 of The Economics of Commissions. The button below is linked to the article for easy reading.
Here is the link to part 1 for anyone that missed it: The Economics of Sales Commissions: Part 1
Here is the link to part 2 as well: The Economics of Sales Commissions: Part 2
“In the first two articles of this series, we looked at the various ways commissions can be calculated in such a way that "costs are covered," namely using a draw, a multiple of salary, or a threshold approach. In the second article, we looked at three different ways of scaling a commission rate relative to production: flat, retroactive, or progressive. We also discussed setting a fixed tier for production (e.g., $20,000) or a relative tier (75% of goal, where goal is individualized based on a person’s book of business). This article will focus on another very popular method for calculating commissions: the matrix.”