A manufacturer of prosthetic devices has decided to review his company’s sales compensation system. Historically, salespeople were paid on straight salary. While the company has grown in recent years, the president is convinced that the sales force could generate more sales volume. A major part of the sales job is missionary, yet with the increasing number of physician groups expanding into rehabilitation medicine, a new target market is possible. The manufacturer is also convinced that not all the products in the line have the same margin.
What form of compensation would you recommend?