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Study Guide Mo
D099- Sales Management
Study Guide
Module 9
1. Discuss the importance of compensation packages in attracting and retaining top
sales talent.
a. A company that offers compensation packages lower than industry
standards will struggle to attract top candidates, resulting in a less
competitive workforce and ultimately poorer company performance.
2. Analyze the role of compensation in motivating employees, improving morale,
and increasing loyalty to the organization.
a. Compensation is a key factor in boosting morale, motivation, and job
satisfaction. If employees are not content with their compensation,
turnover rates will increase, and the quality of work will decrease among
remaining staff. A fair compensation plan fosters loyalty to the
organization.
3. Describe the three typical types of compensation for salespeople.
a. Salary: Fixed, regular payments typically calculated annually, monthly, or
weekly. Salaried employees are not paid by the hour, but work as many
hours as necessary to meet goals. Managers are usually salaried.
2026-2027: WGU
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D099-Sales
Management
Management
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Study
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Module
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9 Overview
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Management
Complete
Study
review
Guidewith
Module
chapter-based
9 Overviewquestions
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D099-Sales
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Study Guide Mo
b. Commission: Variable pay based on sales performance. It rewards
salespeople based on the revenue they generate. Often tied to percentage
of sales, but commission plans should avoid incentivizing excessive
discounting.
c. Mix of both: A combination of base salary and commission to provide
stability and performance incentives.
4. Explain the concepts of recoverable draw and nonrecoverable draw. How does a
nonrecoverable draw differ from a salary?
a. Recoverable draw: A payout the company expects to recover from future
earnings.
b. Non-recoverable draw: A payout that the company does not expect to
recover. It is often seen as a form of salary since it does not need to be
paid back, unlike a recoverable draw.
5. Explain the advantages and disadvantages of a salary.
a. Advantages: Provides job security, stability, and easier budget forecasting
for employers.
b. Disadvantages: May not be as motivating as variable pay because it does
not reward performance.
6. Explain the advantages and disadvantages of commissions.
2026-2027: WGU
WGU
D099-Sales
D099-Sales
Management
Management
Study
Study
Guide
Guide
Page
Module
Module
2 of98Overview
9 Overview
andand
KeyKey
Concepts
Concepts.pdf- (exam preparation).
Downloaded by madiba South Africa stuvia ()
Management
Complete
Study
review
Guidewith
Module
chapter-based
9 Overviewquestions
and Key and
Concepts.pdf=
accurate
Pageanswers.
1Includes
of 8 2026//2027
accurately WGU
reviewed
D099-Sales
questionsManagement
and verified answers.
Study Guide Mo
D099- Sales Management
Study Guide
Module 9
1. Discuss the importance of compensation packages in attracting and retaining top
sales talent.
a. A company that offers compensation packages lower than industry
standards will struggle to attract top candidates, resulting in a less
competitive workforce and ultimately poorer company performance.
2. Analyze the role of compensation in motivating employees, improving morale,
and increasing loyalty to the organization.
a. Compensation is a key factor in boosting morale, motivation, and job
satisfaction. If employees are not content with their compensation,
turnover rates will increase, and the quality of work will decrease among
remaining staff. A fair compensation plan fosters loyalty to the
organization.
3. Describe the three typical types of compensation for salespeople.
a. Salary: Fixed, regular payments typically calculated annually, monthly, or
weekly. Salaried employees are not paid by the hour, but work as many
hours as necessary to meet goals. Managers are usually salaried.
2026-2027: WGU
WGU
D099-Sales
D099-Sales
Management
Management
Study
Study
Guide
Guide
Page
Module
Module
1 of98Overview
9 Overview
andand
KeyKey
Concepts
Concepts.pdf- (exam preparation).
Downloaded by madiba South Africa stuvia ()
, lOMoARcPSD|44532475
Management
Complete
Study
review
Guidewith
Module
chapter-based
9 Overviewquestions
and Key and
Concepts.pdf=
accurate
Pageanswers.
2Includes
of 8 2026//2027
accurately WGU
reviewed
D099-Sales
questionsManagement
and verified answers.
Study Guide Mo
b. Commission: Variable pay based on sales performance. It rewards
salespeople based on the revenue they generate. Often tied to percentage
of sales, but commission plans should avoid incentivizing excessive
discounting.
c. Mix of both: A combination of base salary and commission to provide
stability and performance incentives.
4. Explain the concepts of recoverable draw and nonrecoverable draw. How does a
nonrecoverable draw differ from a salary?
a. Recoverable draw: A payout the company expects to recover from future
earnings.
b. Non-recoverable draw: A payout that the company does not expect to
recover. It is often seen as a form of salary since it does not need to be
paid back, unlike a recoverable draw.
5. Explain the advantages and disadvantages of a salary.
a. Advantages: Provides job security, stability, and easier budget forecasting
for employers.
b. Disadvantages: May not be as motivating as variable pay because it does
not reward performance.
6. Explain the advantages and disadvantages of commissions.
2026-2027: WGU
WGU
D099-Sales
D099-Sales
Management
Management
Study
Study
Guide
Guide
Page
Module
Module
2 of98Overview
9 Overview
andand
KeyKey
Concepts
Concepts.pdf- (exam preparation).
Downloaded by madiba South Africa stuvia ()
