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21 Aug, 2023

Driving Sales Growth: A Comprehensive Roadmap for leaders

• Sales

Written by McAlign

Introduction

This article offers a comprehensive guide for sales leaders and teams who design commission or compensation plans  to create and implement effective commission and compensation plans that will drive sales growth. It provides tools and strategies to help sales leaders align their compensation plans with their sales goals, measure performance, and develop effective incentives to motivate sales teams.



Topics covered in the article include:


  • Section 1: Sales commissions and compensation plans: types and components

  • Section 2: Business objectives and sales strategy should be aligned with sales commissions and compensation plans

  • Section 3: Effective communication and implementation of sales commissions and compensation plans

  • Section 4: Maximising results and retention through the evaluation and optimization of sales compensation plans



Section 1: Understanding the Types and Components of Sales Commission and Compensation Plans

A. Describe the different types of sales commission and compensation plans


In this article, we will attempt to briefly make sense of the different types of commissions and compensation plans available in the sales world:


Salary-only

A type of sales commission and compensation plan that pays salespeople a fixed amount of money regardless of their sales performance. Despite the fact that it is a type of plan that provides a steady and predictable income to salespeople, it does not directly motivate them or reward them for reaching their sales goals or generating sales revenue.

Commission-only

Sales compensation and commission plans in which salespeople are compensated based solely on the performance of their sales. In addition to providing salespeople with a high income potential, this type of plan also exposes them to a considerable risk of income fluctuation and uncertainty

Salary plus commission

As part of a sales commission and compensation plan, salespeople are paid a combination of fixed and variable compensation based on their sales performance. It is important to carefully design and calculate this type of plan so that the optimal combination of base and variable pay is achieved, as it provides salespeople with both income stability and income incentive.

Salary plus bonus

A type of sales commission and compensation plan that pays salespeople a combination of a fixed amount of money and a variable amount of money based on their achievement of predefined goals or targets. This type of plan provides salespeople with an opportunity to earn extra Income for exceeding expectations, but it also requires clear and measurable criteria for setting and evaluating goals or targets

Draw against commission

Sales commission and compensation plans that pay salespeople advances against future commissions. In this type of plan, salespeople are guaranteed a minimum income, but they must also repay the draw from their earned commissions. The salesperson may incur a debt or deficit if the commissions earned are less than the draw



B. Different types of sales plans offer advantages and disadvantages based on different sales roles, products, markets, and objectives

An overview of the advantages and disadvantages of each type of plan for different sales roles, products, markets, and objectives markets, and objectives, markets, and goals:


Salary-only

This type of plan is suitable for Sales roles that require more service, support, or administrative duties than selling activities, such as account managers, customer service representatives, and sales coordinators, should use this type of plan. Similarly, it can be used for products with low margins, long sales cycles, or complex sales processes, such as software, consulting, or engineering solutions. Additionally, it is suitable for markets that are mature, stable, or saturated, with limited sales volume or predictable growth. Using such a plan allows salespeople to focus on delivering value to customers and building long-term relationships without putting too much financial pressure on them. Sales performance and compensation are not directly linked in this type of plan, which can reduce motivation and productivity.

Commission-only

This type of plan is appropriate for sales roles that emphasise selling over service, support, or administration, such as hunters, closers, and independent contractors. Products with high margins, short sales cycles, or simple sales processes, such as commodities, consumables, or retail goods, can also benefit from it. It is also suitable for markets with high sales volume or variable growth that are dynamic, emerging, or competitive. In such a plan, salespeople are encouraged to work harder, smarter, and faster in order to generate sales revenue, which maximises their income potential and reward. As a result of this type of plan, income stability, burnout, and unethical behaviour may occur for salespeople.

Salary plus commission

This type of plan is suitable for Account executives, business development managers, or field sales representatives may benefit from this type of plan. As well as equipment, services, or solutions with moderate margins, medium sales cycles, or mixed sales processes, it can be used for products with moderate margins, medium sales cycles, or mixed sales processes. As well as moderate or growing markets, it is suitable for markets with moderate or variable sales volumes or growth. Its main advantage is that it provides salespeople with income stability and income incentives and aligns their compensation with their sales performance and contribution to business objectives. A disadvantage of this type of plan is that it requires careful design and calculation to ensure an optimal mix of base pay and variable pay, in order to avoid overpaying or underpaying salespeople.

Salary plus bonus

The type of plan is suitable for sales roles that require achieving specific goals or targets beyond sales performance, such as strategic goals, customer satisfaction, product mix, cross-selling, upselling, or team selling. Also suitable for products with differentiated features, benefits, or value propositions that require more customer education, consultation, or persuasion. Sales performance may also be impacted by external factors beyond the control of salespeople in markets that are challenging, uncertain, or evolving. This type of plan provides salespeople with the opportunity to earn extra income if they exceed expectations. This type of plan has the disadvantage of requiring clear and measurable criteria for setting and evaluating goals or targets, as well as avoiding creating unreasonable or conflicting expectations.

Draw against commission

This type of plan is ideal for roles with high income variability due to seasonality, cyclicality, or unpredictability of sales results. As well as products that require a longer payback period or have high upfront costs, it is suitable for investments that require a long payback period. In addition, it is suitable for markets with high competition or low demand that require more aggressive sales efforts. This type of plan provides salespeople with a minimum income guarantee and helps them manage their cash flow and expenses. Its main disadvantage is that it requires repayment from earned commissions, which may create a debt or deficit for salespeople if their commissions are not sufficient


C. Common components of sales commission and compensation plans

The purpose of sales commissions and compensation plans is to motivate and reward salespeople for their contributions to a company. There are two main elements of these plans: base pay and variable pay, also known as incentive pay or commission. There are some sales compensation plans that include only commissions, while others include only base salaries. Most include a mix of the two.

The following are some common components of sales commissions and compensation plans:


Base pay

Salespeople receive a fixed salary regardless of their performance

For example, if the average base pay for a sales position in your industry is $50,000 per year, you might set your base pay at a similar level

Variable pay

Salespeople can earn additional income based on their performance. An incentive can be in the form of a commission, a bonus, or another form of compensation

For example, if the goal is to increase market share, then the plan should incentivize sales reps to sell to new customers . One popular model is the revenue commission model, which pays a percentage of the revenue generated by the sales rep. For example, if the sales rep sells a $1,000 service, they might earn a 10% commission, or $100 

Incentives/Bonuses

Salespeople are rewarded for achieving specific goals or targets using incentives or bonuses

For example, a company might offer a bonus of $1,000 for exceeding a sales quota by 10% or for selling 100 units of a new product.

Quotas

Commissions and bonuses are earned when salespeople meet their quotas

For example, you might set a quota of $100,000 in revenue or 100 units sold per month

Thresholds

Before salespeople are eligible for bonuses or commissions, they must meet certain performance levels

For example, you might set a threshold of $80,000 in revenue or 80 units sold before commissions are paid.

Accelerators

When salespeople surpass their quotas or targets, they receive increased commissions or bonuses

For example, you might increase the commission rate from 10% to 15% when salespeople exceed their quota by 20%

Caps

Salespeople are limited in how much they can gain in commissions or bonuses

For example, you might set a cap of $10,000 per month on commissions

Clawbacks

The clawback provision requires salespeople to repay commissions or bonuses if they fail to comply with certain conditions

For example, you might require salespeople to repay commissions if a customer cancels an order within 30 days

Splits

Commissions or bonuses are shared between two or more salespeople.

For example, if two salespeople work together to close a $10,000 sale with a 10% commission rate, they might split the $1,000 commission equally.

Overrides

Managers and supervisors receive commissions based on their subordinates' performance.

For example, you might pay managers a 5% override on the commissions earned by their subordinates



Section 2: Aligning Sales Commission and Compensation Plans with Business Objectives and Sales Strategy

    A. Aligning sales commissions and compensation plans with overall business objectives and sales strategy

    It is crucial to align sales commission and compensation plans with the overall business objectives and sales strategy of the organisation because they play a critical role in motivating and incentivizing salespeople. In order to achieve the company's goals, well-designed sales commission and compensation plans are essential.

    As an example, if the goal of the company is to increase market share, then the commission and compensation plan should emphasise new customer sales. As part of this strategy, the company may offer higher commission rates or bonuses for acquiring new customers or selling certain products or services.

    As an alternative, if the company's goal is to increase profitability, then it might design a sales commission and compensation plan to encourage salespeople to sell high-margin products or upsell existing customers. The company may offer higher commission rates or bonuses for selling these products or services or for achieving certain profitability goals.

    It is therefore crucial to align sales compensation and commission plans with the overall business objectives and sales strategy of the organisation. Salespeople are motivated and Employees are incentivized to succeed. This can lead to growth, profitability, and long-term success for the company


      B. Identify the key factors to consider when setting sales commission and compensation plans.


      When setting sales commission and compensation plans, there are several key factors to consider. These include:



      Revenue growth

      The plan should be designed to motivate the sales team, an incentive plan that focuses on revenue growth needs to be created

      Profitability

      The plan should be designed to encourage salespeople to drive revenue growth vices and to drive profitability for the company.

      Customer acquisition

      The plan should be designed to encourage salespeople to drive revenue growth

      Customer retention

      The plan should be designed to encourage salespeople to drive revenue growth repeat business

      Customer satisfaction

      The plan should be designed to encourage salespeople to drive revenue growth and to drive customer satisfaction

      Market share

      The plan should be designed to motivate salespeople to increase market share for the company

      Product mix

      The plan should be designed to motivate salespeople to increase market share for the company services that align with the company’s goals and strategy

      Cross-selling

      he plan should be designed to motivate salespeople to increase market share for the company services to existing customers

      Upselling

      The plan should be designed to motivate salespeople to increase market share for the company-value products or services

      Team selling

      The plan should be designed to motivate salespeople to increase market share for the company at each other in achieving the company’s goals

      Sales cycle length

      The plan should be designed to incentivize salespeople to shorten the sales cycle and to close deals more quickly


      These are just some of the keys that motivate salespeople to increase market share for the company and compensation plans. The specific design of the plan will depend on the goals and priorities of the company, as well as industry norms and best practices.


        C. A framework for defining SMART (specific, measurable, achievable, relevant, and time-bound) goals


        Incentives should be designed to encourage salespeople to increase time-bound) goals for sales commission and compensation plans might include the following steps:



        1. Specific

        To increase market share, the plan should incentivize sales people to be specific and unambiguous, so that salespeople understand exactly what is expected of them.

        For example, a specific goal might be to increase revenue by 10% in the next quarter.


        1. Measurable

        Incentives should be designed to encourage salespeople to increase and are measurable. This means that progress towards achieving the goals can be tracked and evaluated

        For example, revenue growth can be measured by comparing revenue in the current quarter to revenue in the previous quarter

        1. Achievable

        Incentives should be designed to encourage salespeople to increase people should have a realistic chance of achieving the goals if they put in the necessary effort

        For example, a goal to increase revenue by 10% in the next quarter might be achievable if the company has a strong product line and a growing market

        1. Relevant:

        Ensure that the goals and objectives of the sales commission and compensation plan are relevant to the overall business objectives and sales strategy of the organisation. This means that achieving the goals should contribute to the success of the company

        For example, increasing revenue by 10% in the next quarter might be relevant if revenue growth is a key priority for the company

        1. Time-bound

        It is important for the plan to be designed so that sales people are motivated to increase the company's market share.ensation plan. This means that there should be a deadline for achieving the goals, which provides a sense of urgency and helps to focus effort

        For example, a goal to increase revenue by 10% in the next quarter is time-bound because it has a clear deadline


        Incentives should be designed to encourage salespeople to increase and compensation plans that are specific, measurable, achievable, relevant, and time-bound. This can help to ensure that your plan is effective in motivating and incentivizing salespeople to achieve the desired results.

        D. Examples and best practices for aligning sales commission and compensation plans with different business objectives and sales strategies


        Following are some examples of aligning sales compensation and commission plans with different business objectives and sales strategies:


        Increasing market share

        If the goal  to increase market share, the sales commission and compensation plan must incentivize salespeople to sell to new clients

        For example, a company might offer a higher commission rate or bonus for acquiring new customers or for selling certain products or services that are key to the company’s growth strategy

        Increasing profitability

        If the goal  to increase profitability, commissions and compensation should be structured so that salespeople focus on high-margin products and services

        For example, a company might offer a higher commission rate or bonus for selling these products or services or for achieving certain profitability targets

        Improving customer satisfaction

        If the goal is to improve customer satisfaction, sales commissions and compensation plans should reward salespeople for providing excellent customer service

        For example, a company might offer a bonus or other incentive for achieving high customer satisfaction ratings or for resolving customer issues quickly and effectively

        Cross-selling and upselling

        If the goal is to increase revenue through cross-selling and upselling, the commission and compensation plan should encourage salespeople to sell complementary products or services.

        For example, a company might offer a higher commission rate or bonus for cross-selling or upselling

        Shortening the sales cycle

        If the goal is to shorten the sales cycle and close deals more quickly, commissions and compensation should be designed to motivate salespeople.

        For example, a company might offer a bonus or other incentive for closing deals within a certain timeframe


        These are just some examples of how sales commissions and compensation plans can align with different sales strategies and business objectives. In addition to industry norms and best practices, the specific design of the plan will depend on the company's goals and priorities. 



        Section 3: Communicating and Implementing Sales Commission and Compensation Plans Effectively


        A. Ensure effective communication and implementation of sales commissions


        Effectively communicating and implementing sales commission and compensation plans ensures clarity, transparency, fairness, accuracy, timeliness, and compliance. Here are a few reasons why:


        • Clarity: Salespeople need to understand how they will be rewarded for their performance by knowing the details of the sales commission and compensation plan. The goal of motivating and incentivizing salespeople to achieve the desired results can be achieved through this method.

        • Transparency: Communicating the commission and compensation plan transparently builds trust and confidence among salespeople. As a result, morale can be improved and turnover can be reduced.

        • Fairness: If the sales commission and compensation plan is implemented fairly and consistently, salespeople will be rewarded for their performance. Therefore, salespeople may be able to resolve disputes and conflicts more quickly.

        • Accuracy: Making sure sales commissions and compensation plans are calculated accurately can help prevent errors. In this way, salespeople's morale can be improved and disputes can be reduced.

        • Timeliness: Paying salespeople's commissions and bonuses on time ensures that they are rewarded for their performance on time. The motivation and morale of salespeople can be improved if this is done.

        • Compliance: Complying with all relevant laws and regulations prevents legal issues and disputes. Taking this step can help protect the company.

        Overall, effective communication and implementation of sales commission and compensation plans ensures clarity, transparency, fairness, accuracy, timeliness, and compliance. While also protecting the company from legal liability, this can motivate and incentivize salespeople to achieve the desired results.


          B. Communicating sales commission and compensation plans to salespeople and other stakeholders


          Communicating sales commissions and compensation plans to salespeople and other stakeholders should follow these best practices:


          • Use clear language: When outlining the details of the sales commission and compensation plan, make sure you use clear and concise language. Don't use technical jargon or complicated terminology that might confuse salespeople.

          • Provide written documentation: By providing written documentation about the sales commissions and compensation plan, salespeople can be sure they understand how they will be rewarded. The documentation should include all relevant details, such as commission rates, bonus structures, and performance targets.

          • Conduct training sessions: Holding training sessions can help salespeople understand the sales commission and compensation plan. The sessions can provide salespeople with an opportunity to clarify any confusion they may have.

          • Solicit feedback: Soliciting feedback from salespeople can be helpful in identifying any issues or concerns. The feedback can be used to improve the plan and address any issues that are identified.

          • Answer salespeople's questions and concerns: Salespeople should receive timely and effective responses to any questions or concerns they may have about sales commissions. The goal is to build trust and confidence among salespeople.

          • Providing regular updates : Providing regular updates about sales compensation and commissions can help to keep salespeople informed about changes or updates. Having a clear understanding of how salespeople will be compensated can make sure that they are always aware of how they will be rewarded.

          Your sales commissions and compensation plan can be communicated effectively to salespeople and other stakeholders by following these best practices. In this way, everyone can better understand how the plan works and how it rewards salespeople


            C. The best practices for implementing commissions and compensation plans for salespeople


            To ensure that salespeople and other stakeholders understand sales commissions and compensation plans, here are some best practices:


            • Use reliable systems and tools: Effective sales compensation plans require reliable systems and tools to be implemented. In this way, errors and discrepancies can be prevented and the overall effectiveness of the plan can be improved.

            • Automate the calculation and payment of commissions and bonuses to improve accuracy and timeliness. The motivation and morale of salespeople can be improved in this way.

            • Measure performance and results: Tracking the performance and results of salespeople can help ensure that they are rewarded appropriately. As a result, disputes and conflicts among salespeople can be avoided.

            • Audit data and processes: Conducting regular audits of data and processes can help ensure that sales commissions and compensation plans are adhered to accurately and fairly. The goal is to reduce errors and discrepancies and improve the overall effectiveness of the plan.


            • Resolve disputes and errors promptly: Resolving disputes and errors promptly can help to improve salesperson confidence. It can improve morale and reduce turnover.


            • Review and adjust plans periodically: Reviewing and adjusting the sales commission and compensation plan periodically can help to ensure alignment with company goals and priorities. The plan can be made more effective by doing this.


            These best practices can help you implement your sales commission and compensation plan effectively to your salespeople. Salespeople's morale, motivation, and performance can be enhanced when the plan is implemented accurately, fairly, and efficiently  


            Section 4: Evaluating and Optimising Sales Commission and Compensation Plans for Maximum Results and Retention

              A. Importance of evaluating and optimising sales commission and compensation plans 


              Here are four reasons why it's important to evaluate and optimise sales compensation and commission plans regularly:


              Effectiveness: It is important to regularly evaluate the effectiveness of the commission and compensation plan, so that any issues or areas for improvement can be identified. The plan can achieve the desired results and motivate salespeople to achieve their goals if this is done.


              Competitiveness: By benchmarking the sales commission and compensation plan on a regular basis against industry norms and best practices, it can help to ensure that it remains competitive as well as attract and retain top sales talent.


              Alignment with changing business needs: Regularly reviewing and adjusting sales commissions and compensation plans can help the plan remain relevant to changing business needs. By doing so, you can ensure the plan continues to drive the behaviours and performance that are essential to achieving the company's objectives.


              Alignment with market conditions: An effective sales commission and compensation plan needs to be reviewed and adjusted regularly as market conditions change. As a result, the plan can continue to drive the behaviours and performance that are necessary for success in a changing market environment.


              In summary, Benchmarking sales commissions and compensation plans regularly against industry norms and best practices is one of the best ways to ensure that they remain competitive, thereby helping needs and market conditions. This can help to drive growth, profitability, and long-term success for the company


                B. Best practices for evaluating sales commissions


                Best practices for evaluating sales commissionstion plans using quantitative and qualitative methods:

                • Measuring key performance indicators (KPIs): The effectiveness of a sales commission and compensation plan can be evaluated by measuring key performance indicators (KPIs) such as revenue growth, profitability, customer acquisition, customer retention, and customer satisfaction. The results of this can provide valuable insights into how well the plan is achieving its goals and driving the desired behaviour and performance.


                • Conducting surveys, interviews, and focus groups: Surveys, interviews, and focus groups can provide valuable qualitative feedback about sales commissions and compensation plans. This can help identify issues or concerns with the plan and gather suggestions for improvement.


                • Benchmarking against industry standards: Keeping the sales commissions and compensation plan competitive can be achieved by benchmarking it against industry standards and best practices. By doing so, you can attract and retain top sales talent.


                • Analysing trends, patterns, and anomalies: An analysis of trends, patterns, and anomalies in the data can help to identify any issues or areas for improvement in the sales commission and compensation plan. To ensure that the plan is achieving the desired results and driving the desired behaviours and performance, this can be helpful.

                Following these best practices will enable you to evaluate your sales commissions and compensation plans in a quantitative and qualitative manner. In this way, you can ensure that your plan remains relevant, competitive, and aligned with changing business needs and market conditions as they change.


                  C. Best practices for optimising sales commission and compensation plans 

                  Best practices for evaluating sales commissionstion plans based on the evaluation results:

                  • Identifying gaps, opportunities, and challenges: Your sales commissions and compensation plan may have gaps, opportunities, or challenges based on the evaluation results. By identifying areas for improvement, strategies can be developed to address them.

                  • Testing different scenarios: Testing different scenarios can help evaluate the potential impact of changing the sales commission and compensation plan. Identifying the most effective strategies can help to improve the plan and achieve the desired outcomes.

                  • Making data-driven decisions: A data-driven approach can ensure that changes to the sales commission and compensation plan are based on solid evidence and analysis. To achieve the desired results, this can improve the effectiveness of the plan.

                  You can optimise your sales commission and compensation plan based on the evaluation results if you follow these best practices. By doing so, you can ensure that your plan remains effective, competitive, and aligned with changing business needs and market conditions


                    D. Examples of how to evaluate and optimise sales commission and compensation plans 

                    Best practices for evaluating sales commissions commission and compensation plans for different situations:

                    • Example 1: Base rate only commission: A base rate only commission plan pays sales representatives an hourly wage or flat salary without commissions. 


                    For Example: A company might pay its four salespeople each $1,250 a week regardless of how many sales they make. In order to evaluate and optimise this plan, the company may track key performance indicators (KPIs) such as revenue growth, customer acquisition, and customer satisfaction. In the event that the plan isn't effective, the company may introduce a commission component to motivate salespeople.


                    • Example 2: Base salary plus commission: Base salary plus commission plans pay salespeople an hourly or straight base salary plus a commission rate.


                     For  example, a company might pay its salespeople a base salary that represents 60% of their total compensation and a commission rate that represents 40% of their total compensation. In order to evaluate and optimise this plan, the company may track KPIs such as revenue growth, profitability, and customer satisfaction. To provide stronger incentive for salespeople to sell more, the company might adjust the salary-to-commission balance if the plan is not effective.


                    • Example 3: Commission with accelerators: A commission plan with accelerators pays salespeople more commission when they exceed their quotas or targets. 


                    • For example, a company might pay its salespeople 8% commission when they achieve their quota, and 12% commission when they exceed their quota . To measure if the plan is achieving the desired results, the company might track KPIs such as revenue growth, profitability, and customer satisfaction. To increase salespeople's incentive to exceed quotas, the company may adjust the accelerators if the plan does not work.

                    These are just some examples with numbers of how to evaluate and optimise sales commissions and compensation plans. Depending on the company's goals and priorities, as well as industry norms and best practices, the specific approach will be determined



                    Conclusion

                    To drive sales performance and retain top sales talent, effective sales commission and compensation plans must be designed, implemented, evaluated, and optimised. To ensure that these plans stay relevant, effective, and competitive, they should be regularly evaluated and optimised to ensure alignment with the organisation's overall business objectives and sales strategy.

                    Here are some actionable tips and recommendations for sales leaders:

                    • Salespeople and other stakeholders should be clearly informed about the details of the commissions and compensation plan in clear language.

                    • Utilise reliable systems and tools to implement the plan accurately and efficiently, automating calculations and payments whenever possible.

                    • To evaluate the plan's effectiveness, track key performance indicators (KPIs) such as revenue growth, profitability, customer acquisition, customer retention, and customer satisfaction.

                    • To identify issues and concerns with the plan and to gather suggestions for improvement, seek feedback from salespeople and other stakeholders.

                    • Maintain alignment with changing market conditions and business needs by reviewing and adjusting the plan regularly.

                    This guide provides sales leaders with tips and recommendations for designing, implementing, evaluating, and optimising effective commission and compensation plans.



                    FAQs

                    Here are some frequently asked questions about sales commission and compensation plans:

                    • Q: How often should I review my sales commission and compensation plan? 

                    A: A sales commission and compensation plan should be reviewed at least once a year to ensure that it remains effective, competitive, and aligned with changing market conditions. In the event of significant changes in your business or the market environment, you may need to revise your plan more frequently.

                    • Q: How do I motivate low-performing or high-performing salespeople? 

                    A:  To motivate low-performing salespeople, you might consider providing them with additional training, coaching, or mentoring. Make their quotas or targets more achievable by adjusting their quotas or targets. You might consider rewarding high-performing salespeople for consistently exceeding their quotas or targets with additional incentives or rewards.

                    • Q: How do I deal with sales turnover or attrition? 

                    A:  Your sales commissions and compensation plan might need to be reviewed to ensure that it is competitive and provides strong incentives for salespeople to stay. Also consider offering additional benefits or perks, such as flexible working arrangements, career development opportunities, or a positive work culture, to improve employee retention.

                    • Q: How do I handle changes in product pricing or market conditions? 

                    A:  If product pricing or market conditions change, you might need to adjust your commissions and compensation plan to make sure it remains aligned with your business goals. If your product pricing changes significantly, you might need to adjust your commission rates or quotas to remain fair and achievable.

                    • Q: How do I ensure compliance with legal or ethical standards? 

                    A: Legal and HR experts should be consulted when designing and implementing sales commission and compensation plans. In addition to ensuring compliance with all applicable laws and regulations, you should also ensure it is implemented in an ethical and fair manner






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