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After defining your organization's revenue classes, you assign one or more revenue classes to a compensation plan and assign the plan to a salesperson. By assigning revenue classes, you specify the types of revenue for which each salesperson can earn compensation.

Many companies award compensation based on the types of products or services its salespeople sell. Depending on the business practices of your sales organization, you might award compensation based on factors other than products or services sold. For example:

• Your sales organization might have customer account teams, where salespeople only receive compensation for sales to their assigned set of accounts. In this case, each customer account is probably a separate Oracle Sales Compensation revenue class.

• Your company might organize its sales strategy around expansion into new markets, where each new market is defined as a separate revenue class.

• Your company might use industry-based sales compensation, paying compensation only for sales made in a salesperson's assigned set of industries.

For example, Global Computers, Inc. awards compensation based on the types of products or services its salespeople sell. At the broadest level, the company sells PCs, peripherals, education services, consulting services, and support maintenance services. While some types of salespeople, such as resellers, are only authorized to sell a subset of this offering, the company awards compensation to some of its salespeople for all types of products and services. Thus, for Global, each product or service category is an Oracle Sales Compensation revenue class (Figure 3 -2).