We present an empirical framework to analyze real-world sales-force compensation schemes. The model is flexible enough to handle quotas and bonuses, output-based commission schemes, as well as "ratcheting" of compensation based on past performance, all of which are ubiquitous in actual...

About 10% of the US labor force is employed in selling related occupations and the expenditures on selling activities total close to 5% of the US GDP. Without question, selling occupies a prominent role in our economy. This chapter offers a discussion on the construct of selling, its role in...

To have a productive sales force, firms must provide their salespeople with sales training. But from a profit-maximizing perspective, there are also reasons to limit training: training is expensive, it has diminishing returns, and trained salespeople need to be compensated at a higher level...

About 10% of the US labor force is employed in selling related occupations and the expenditures on selling activities total close to 5% of the US GDP. Without question, selling occupies a prominent role in our economy. This chapter offers a discussion on the construct of selling, its role in...