1. Definition: Fixed compensation regardless of sales performance.

2. Nature: Guaranteed pay, typically annual amount divided into regular payments.

3. Purpose: Provides financial stability and security for salespeople.

4. Example: £30,000 annual base salary paid monthly.

1. Definition: First-time sales to new customers.

2. Nature: One-time or initial purchases.

3. Effort: Typically requires more effort to acquire.

4. Examples: New client signing up for a service, first-time product purchase.

1. Definition: Sales made to customers who have previously purchased from the company.

2. Nature: Can be one-time purchases or sporadic orders.

3. Effort: May require ongoing sales efforts to secure each new purchase.

4. Examples: A client buying a new product, upgrading their service, or making a repeat purchase of consumable goods.

1. Definition: Predictable, stable revenue that a company can count on receiving on a regular basis.

2. Nature: Typically involves ongoing subscriptions or contracts with regular billing cycles.

3. Effort: Once established, it requires less effort to maintain compared to securing new sales.

4. Examples: Monthly software subscriptions, annual maintenance contracts, or ongoing service agreements.

1. Definition: Increased commission rates for exceeding certain sales thresholds.

2. Nature: Tiered structure that rewards overperformance.

3. Purpose: Motivates salespeople to exceed targets and drive higher revenue.

4. Example: 5% commission up to $100k in sales, 7% for sales between $100k-$200k, 10% for sales above $200k.

1. Definition: Adjustments to commission based on the profit margin of sales.

2. Nature: Can increase or decrease commission rates based on deal profitability.

3. Purpose: Encourages salespeople to focus on high-margin deals and discourage excessive discounting.

4. Example: 20% increase in commission for deals with >30% profit margin, 10% decrease for deals with <10% margin.

1. Definition: Additional compensation awarded for meeting or exceeding targets.

2. Nature: Often a percentage of base salary or a fixed amount.

3. Purpose: Provides extra motivation to achieve and exceed goals.

4. Example: 10% of base salary awarded as a bonus for reaching 100% of annual target.