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Microcap & Penny Stocks : TSIS: WHAT IS GOING ON? -- Ignore unavailable to you. Want to Upgrade?

To: R. Gates who wrote (3049)	7/9/1998 10:08:00 AM
From: MeDroogies	Respond to of 6931

The other good thing about commission is that you always know your cost %. In other words, in a commission structure set at 10%, with a 5% bonus, you can't exceed personnel costs of 15% (obviously), whereas with fixed salaries, that percentage can be very high (if revenues are low) or very low (if revenues are high). Furthermore, commissions can be set on a sliding scale...example: $100,000 to $1,000,000 in revenues...commission is 5% $1,000,000 to $5,000,000....7% $5,000,000 to $10,000,000...9% etc, etc....you get the picture. That way, in low revenue situations, you actually have a LARGER margin % vs. personnel costs.