Why Consider Salary Plus Commission in Entrepreneurship?
As an entrepreneur, integrating a salary plus commission structure can have multiple advantages:
Motivation and Performance: This model drives employees to excel, as their earnings directly reflect their efforts and results. Financial Flexibility: It reduces fixed payroll costs since a portion of the compensation is variable, aligning with the company’s revenue fluctuations. Attracting Talent: Competitive commission plans can attract high-performing individuals who are confident in their abilities to achieve set targets. Risk Sharing: It shares the financial risk between the employer and employees, especially useful for startups with limited cash flow.