Q.Why do most firms prefer the combination (salary plus commission) method of remunerating salesmen?

The combination method is the most widely used because it blends the strengths of the salary and commission methods while avoiding their extremes. …

Most firms prefer the combination (salary plus commission) method because it combines the advantages of the straight salary and straight commission methods while avoiding their main drawbacks.

1. Security plus incentive — the fixed salary gives the salesman a steady, secure income (the strength of the salary method), while the commission rewards extra selling (the strength of the commission method), so the salesman has both stability and motivation.
2. Covers non-selling duties — because part of the pay is a salary, the salesman is willing to do necessary non-selling work such as servicing customers, sending reports and building goodwill, which a pure-commission salesman tends to neglect.
3. Fair to both sides — it is fair to the salesman (he is not left without income in a slack period) and to the firm (part of the cost varies with sales, so it pays for results).
4. Attracts and retains good salesmen — the mix of security and reward makes the firm attractive to able salesmen and encourages them to stay, reducing turnover. …

Do not merely describe what the combination method is; the question asks WHY it is preferred, so focus …