Why commissions and bonuses aren't the same

10/25/2011 | Sales Benchmark Index

While they are sometimes used to mean the same thing, commissions and bonuses are different motivation tools, and using them effectively is critical for meeting your sales objectives, writes Ryan Tognazzini. In a commission system, which is good for revenue-driven companies in high-growth mode, salespeople get paid a percentage of their sales, he writes. In a bonus system, which is well-suited for slow- to moderate-growth companies, sales representatives get paid for meeting specific objectives.

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