Career sales force Essay Example | Topics and Well Written Essays - 750 words

Career sales force - Essay Example Disadvantages The individual agent has to pay his/her own business expenses as they are working temporary for that concerned organization and they are actually hired by some other organization. Possibility of data leakage as more than one organization is being catered. They could be working for more than one company, which mean distribution of resources. Some agents may have favorites, which may affect the work. Independent sales force is expensive as they are working on a project basis. 2. What are the advantages and disadvantages of commission-only compensation versus salary-only compensation The advantage of using commission only compensation is that the company does not have to pay the general employee benefits or fringe benefit but has to pay certain percent on the sale of each product and the disadvantage is that their initial cost is too high as rest of the overhead costs are not covered by the organization. The advantage of using salary only compensation is that they are not highly paid but get all the employee benefits and are paid a fixed amount of monthly salary. The disadvantage is that the company has to pay all the business expenses. 3. What problems do you see with JPF's sales force strategy and structure decisions For career sales force it takes too long to hire and train, and bringing them up to the necessary productivity levels and one of every seven or eight recruits actually succeeds in the insurance business. Independent agents were too costly. There were also some IMOs that were "recruiting only", that is, they recruited agents but did not provide any of the administrative support for the agents. Need for more SVP's to maintain the targets. One SVP is catering all the products and all types of customers at the... The levels of career sales forces succeeding in insurance business was low. This information was derived from the scenario given. The reason for less success rates was that the career sales force may have skills to do the tasks but not an expert at it. The advantage of using commission only compensation is that the company does not have to pay the general employee benefits or fringe benefit but has to pay certain percent on the sale of each product and the disadvantage is that their initial cost is too high as rest of the overhead costs are not covered by the organization. The advantage of using salary only compensation is that they are not highly paid but get all the employee benefits and are paid a fixed amount of monthly salary. The disadvantage is that the company has to pay all the business expenses. For career sales force it takes too long to hire and train, and bringing them up to the necessary productivity levels and one of every seven or eight recruits actually succeeds in the insurance business. Jefferson Pilot Corporation has been using territorial sales force as their means of expanding rapidly.