Glossary
Compensation format
The structure of guaranteed earnings vs commissions.
Compensation format determines how sales reps are paid. Common formats are:
Salary-only — everything guaranteed with no performance incentive
Commission only — Nothing guarantee with high risk/ high reward
Salary plus commission — Most common, with equal employe/rep risk vs. reward
Commission draw — Reps earn commission once it exceeds their base salary
Salary-only — everything guaranteed with no performance incentive
Commission only — Nothing guarantee with high risk/ high reward
Salary plus commission — Most common, with equal employe/rep risk vs. reward
Commission draw — Reps earn commission once it exceeds their base salary