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Impact of Commission-Based Compensation on Sales Revenue: A Case Study of B2C Solar Pay-As-You-Go (PAYGO) Organizations

Author

Listed:
  • Phiri, Agness

    (University of Zambia)

  • Daka, Harrison

    (University of Zambia)

Abstract

B2C Solar Pay-As-You-Go (PAYGO) organizations in Zambia face challenges related to sales force costs, customer affordability, and delayed revenue realization. This study assessed the impact of commission-based compensation on sales revenue in B2C Solar PAYGO organizations in Zambia, focusing on commission structures, sales agent productivity, and organizational benefits. A quantitative cross-sectional survey, guided by a positivist philosophy, was conducted among 114 sales agents and 25 managers from four organizations: SunKing, MySol/Engie, Vitalite, and RDG, operating in Lusaka and Kitwe. Data were analyzed using descriptive statistics, independent-samples t-tests, one-way ANOVA, Pearson correlation, and cross-tabulation in SPSS. Salary plus commission was the dominant compensation structure (55.3%), followed by commission-only arrangements (29.8%). Agents reported modest understanding of commission systems (mean = 3.28), while perceptions of payment timeliness (2.69) and fairness (2.74) were below the neutral midpoint. The mean motivation score was 3.52. No significant differences in motivation were found across compensation structures (F = 1.388, p = 0.251) or gender (t = 0.620, p = 0.537). However, a very strong positive relationship was observed between motivation and sales performance (r = 0.861, p

Suggested Citation

  • Phiri, Agness & Daka, Harrison, 2026. "Impact of Commission-Based Compensation on Sales Revenue: A Case Study of B2C Solar Pay-As-You-Go (PAYGO) Organizations," African Journal of Commercial Studies, African Journal of Commercial Studies, vol. 7(5).
    • Handle: RePEc:cwk:ajocsl:2026-094
    DOI: 10.59413/ajocs/v7.i5.28
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    JEL classification:

    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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