This e-book is the second in our Sales Compensation Series written especially for the small business owner. It is intended to help the small business owner understand what is considered a “commission”, when to think about using a commission type of plan (as opposed to a bonus plan which is covered in our e-book Designing a Sales Bonus) and how to design a commission plan that is most likely to be right for your business. Three types of commission plans are discussed and illustrated: flat rate commission, tiered rate commission, and variable rate commission. This ebook offers actionable answers to questions about how to use sales commissions wisely in a small business. With this ebook in hand, our hope is that the small business owner will have useful information to use to act confidently when change to sales compensation is needed in the business.