What is a potential negative outcome when a company limits how much salespeople can earn in commissions?
A. Salespeople will spend more time on administrative duties instead of new accounts.
B. Salespeople will spend more time with proven customers instead of with high-potential customers.
C. Salespeople will demand stock options to compensate.
D. Top-performing salespeople may quit selling when they reach their quota.
E. Companies will have to pay bonuses more frequently to motivate employees to sell more.
Answer (2)
Limiting sales commissions can discourage top performers from pursuing additional sales past their quota, potentially leading to decreased motivation and a negative impact on overall sales. If salespeople feel their earnings are capped, they may focus less on acquiring new customers and more on maintaining existing ones. Therefore, thoughtful commission structures are essential for maintaining motivation and company growth. ;
Limiting sales commissions can demotivate top salespeople by capping their potential earnings, which may lead them to lose interest in pursuing new sales. As a result, they might focus more on maintaining existing clients rather than acquiring new ones. This could ultimately harm the company's overall sales performance.
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