In Which Situation Is a Commission-Only Plan Best Suited

question 42

Multiple Choice

In which situation is a commission-only plan best suited?

• A)The salesperson has little influence over the sales.
• B)The company is following a lowest-cost strategy.
• C)Extensive training or expertise is required.
• D)The sales cycle is long.

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Definitions:

Frequency of Customer Sales Calls

The number of times sales representatives contact or visit customers within a specific period to drive sales.

Nonselling Time

Periods in a salesperson's schedule not directly involved in selling activities, such as administrative tasks and travel.

Revenue Generated

The total amount of money produced from the sale of goods or services before any costs or expenses are subtracted.

Segment Accounts

The process of dividing a company's customer accounts into groups or segments based on shared characteristics to tailor marketing or sales efforts.