by New businesses vary greatly in terms of business models and product offers, but every start-up needs to convince consumers to buy its products or services to achieve success. Many business involved in selling physical goods hire sales employees who specialize in convincing potential customers to buy products. Sales employees can receive pay in several different forms.
Salaries and Wages
Many sales employees receive a fixed amount of hourly compensation called a wage or a fixed amount of monthly compensation, known as a salary. Salaried workers are paid a fixed amount of money per month based on an annual salary regardless of how many hours they actually work. In other words, salaried workers must simply work as much as they need to do their jobs, which could be more or less than 40 hours a week.
Fringe Benefits
Fringe benefits describe non-cash form of compensation, such as health insurance benefits, access to a company vehicle and health club memberships. Sales employees often receive certain fringe benefits as compensation along with normal cash pay. The IRS considers fringe benefits income, although certain benefits like health insurance are exempt from taxation.
Commissions
While most workers receive wages or salaries, sales employees also commonly receive pay in the form of commissions. Commissions are payments that sales workers receive based on the amount of product that they sold. For example, a jewelry store might give its sales people a 10 percent commission on all sales, so if a worker sells Rs. 10,00,00,000 worth of jewelry during a month, he would receive Rs. 1,00,00,000 of commission pay for that month.
Bonuses
Bonuses are special awards of cash that employers sometimes give to workers for exemplary performance. If sales employees perform especially well during a certain moth or year, they may receive bonus pay at the end of that month or year.
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