INCENTIVES AND COMPENSATION
Acme Sign Co. manufactures indoor and outdoor signage primarily for several large international fast-food chains. Which of the following employees receives the largest paychecks?
SALES FORCE COMPENSATION
The highest paying sales jobs are straight commission, the lowest paying are straight salary (usually clerical sales).
Please beware of:
Note: when you see the sign on college campuses that says 'summer jobs - $10', it's not kidding. Here's what I want you to ask them: "ten dollars per what?" I have yet to get a straight answer. Some of the highest paying and most rewarding jobs are in sales, but be careful.
A draw is a loan against future commissions: you can quit your job and owe them money! It is not to be regarded as salary, even if it is a 'guaranteed' draw. A legitimate use of a drawing account is to ease income fluctuations when straight commission is used.
A bonus is paid only if you reach some specified level of sales or, sometimes, at the whim of the sales manager. A bonus is legitimate if the quota is set at an achievable point; used as an incentive or to direct goals.
Expenses are reimbursements for the cost of doing business: an expense account is not to be considered as income!
KleenKut Kutlery Kumpany offers you a summer job as a sales representative. You will receive a $1,000 per month draw, fifty percent commission, a $1,000 per month expense account, and a bonus of $1,000 if your sales exceed $100,000 in any one month period. You are told that your income potential is at least $5,000 'and more' per month.
What will be your likely income for the summer?