What are the major Advantages and Disadvantages comes when assign commission on Sales for Sales Persons along basic pay?

Advantages will be sales person will be motivated and dedicated to his task. Not only will the sales person will achieve more salary but it will drive him to have initiative and eagerness, and desire to achieve his goals..

 

Disadvantages will be sales person will develop personally, an attitude of arrogance. On the business side of the story, it will affect the budgeting side of the business.. comapny should give what is due to his employees..

Once a person searching for a job it already means that they're searching for an income.once a company tell them that there will be a commission once they reached the target it will motivate the worker to work harder because it could help more specially to their family needs and other relatives. Disadvantage comes when the person didn't reach the target and didn't get insensitives they will feel ashamed on their boss specially if their head of the company gets angry why the sales man didn't reach the target.. sales person will be feeling embarrassed and become lazy.

Disadvantage: without commission, staff will slow down on running for the sales target * Unfair for the other products that doesn't have spiff Advantage : general target will be running to be achieved * Staff and company will be win-win situation

if you work on daily you will get commission if u not work so cant get it

*In simple words it motivate and improves a sale man. But will be a destroyer in a team

More than point to be considered here: Firstly, basic salary is very vital for the sales team to secure the kitchen expenses which mitigate the pressure of securing such life commitments. Second issue, sales commision is a motivational tool the sales team and nothing to do with the basic salary. Usually, the basic salary of the sales team is less than what their coworkers in other departments are getting but they are compensated by the commission. Thx