Do Bonuses Enhance Sales Productivity? A Dynamic Structural Analysis of Bonus-Based Compensation Plans — HBS Working Knowledge

Do Bonuses Enhance Sales Productivity? A Dynamic Structural Analysis of Bonus-Based Compensation Plans — HBS Working Knowledge:

"Key concepts include:

* Bonuses do increase productivity.
* Quarterly bonuses increase sales force productivity more than annual bonuses.
* Sales people tend to give up when far away from reaching a quota, but they don't slow down once a quota is reached-especially if a firm offers commissions for overachievement"

Thanks to SimoleonSense! Good article!