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bonus1
1. (sales definition) A special compensation option that is a payment made at the discretion of management for achieving or surpassing some set level of performance. Whereas commissions are typically paid for each sale that is made, a bonus is generally not paid until the salesperson surpasses some level of total sales or other aspect of performance. The size of the bonus, however, might be determined by the extent to which the salesperson exceeds the minimum level of performance required to earn the bonus. Thus, bonuses are usually additional incentives to motivate salespeople to reach high levels of performance rather than a part of the basic compensation plan. 2. (sales definition) An element in a salesperson's compensation that is paid infrequently in a lump sum, often based on subjective judgments of performance.
- Part of Speech: noun
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- Industry/Domain: Advertising
- Category: Marketing communications
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