A compensation mix is the mix of salary with commission, and/or bonus. Compensation can be financial incentives and non-financial incentives. Compensation acts as a motivator and hygiene factor.
For selling estate planning advice, the salesperson needs enormous effort to impress the customers since the investment from the customer end does not come easily. The straight
commission is best suited for estate planning advice since sales will be increased due to the extra effort from the salesperson. Real estate advice is not such which are frequently sold and also there is no need of long term relationship with the customers.
For a missionary salesperson, straight salary is best suited since this job requires a long negotiation period and also need to introduce new product lines, finding new territories, and also new doctors graduates every year.
Combination compensation plans are best suited for a salesperson for large factory machines. A salary plus bonus should be provided to the salesperson since the large factory machines to be sold is a long-term objective.
A rep for office equipment should be provided combination compensation with salary plus commission combination since the management wants higher sales without losing its customer services.