There is on one correct type of compensation plan. A 1994 study by Michael Bowers et al. on the hospital industry found that salespeople who worked primarily for acute-care hospitals and health systems calling on physicians on staff, referral physicians, and benefit managers were paid predominantly by straight salary, as shown in FIGURE 13-6. As shown in the figure, compensation for a smaller percentage of salespeople involved a variety of other incentives. The advantages of these alternatives are discussed in the following sections