Memorandum Regarding Change in Commission Structure



Memorandum Regarding Change in Commission Structure :




This Memorandum should be typed in the official letter-head of the company.


TO :


FROM :


DATE :


SUBJECT : Memorandum Regarding Change in Commission Structure


Our 2009 losses caused us to realize that our commission schedules were truly contingent on Bajlani Inc. making profits. We have now taken time to read our contracts! Upon closer review of our present structure, we have also learned that our 2009 objectives of 15 percent will generate a factor of 0! We knew this possibility would cause a lot of financial problems for our entire sales organization!


Therefore, the regional vice presidents began discussions of alternative schedules. We soon realized that the most powerful means to gain support on the issue was to show results, and we have done that. Our new business will surpass Rs.9000. We’ve sold high rate increases, we’ve sold productivity, and we’ve held together.


In light of these realizations, projections, and successes, we will be making changes to your commission schedules. (See the attached scale.)


Simply said, if Bijlani Inc. makes its numbers, you do very well. There is a real possibility that improved experience and continued expense controls can generate even better commissions for you during the upcoming period.


If you have questions regarding these changes, please call your regional vice president or me. Thanks for the results.


Cordially,




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