Usually a smaller base pay with the potential for much greater income based on performance. Straight Commission . A percentage of the business generated. Let's take a look. Commission Plans Commission plans require a little more thought and planning than salary systems.
Draws can be recoverable or nonrecoverable.
As the length of the cycle increases, the need for some type of draw may be required as these elements of the cycle are often not under the direct control of the sales staff. As stated earlier, there are combinations of salary and commission. Careful thought should be given to these plans. While they are very attractive in some ways, they can be self-defeating in others. As you can see, compensation plans are not something to be taken lightly.