After reading this chapter, you should be able to

• Discuss the advantages and limitations of straight salary, straight commission, and combination plans.



• Explain how and why a bonus component to compensation might be used as an incentive.



• Understand the effective use of sales contests, as well as the potential pitfalls of their use.



• Identify key nonfinancial rewards and how and why they might be important.



• Recognize key issues surrounding expense accounts in relationship selling.



• Describe how to make compensation and incentive programs work.



• Discuss making decisions on the mix and level of compensation.