When designing a sales compensation program one of the first to decide is the Total Target Cash Compensation for a sales role. That means how much a sales person will get compensated in a year for reaching her quota.
The target cash compensation is split into two parts; the fixed salary and the variable part. A critical question is how much one shall give to the fixed and how much to the variable part? The pay mix, as it is usually called, can be 50/50, 60/40 or any other split one decides to have.
Which are the factors to consider for a larger fixed or a larger variable part?
Use the below infograph to help you understand more this notion.