Among many different options sales management has in regards to the sales compensation plans, there are two main types (and many variations) we observe in sales organisations.
Discretionary bonuses and structured commission plans.
As discretionary bonus, I mean any payment that takes place to sales people that are on a decision of a sales management and is uncoupled by any quantitative measure or KPI. It can still be under them a qualitative approach, where the management can decide on the overall performance of the sales person and decide a bonus. The level of it is decided on generic and personal criteria.Read more