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In this section, we will examine numerous incentive formulas used for sales representatives Without close examination, it s easy to misclassify a sales representative as an income producer, and, therefore, provide an inappropriate pay programWe estimate that sales representatives account for over 90 percent of all sellers, while the remaining 10 percent are income producersAgain, here s a brief definition of the two categories of sellers:

where alternative technologies may be a better choice than Ethernet over MPLS, as well as at an example where the technology is sometimes mis-used

Packet switching technologies obtain statistical gain by multiplexing many traffic demands onto shared facilities that are much larger than any single traffic demand Where providers wish to offer point-to-point services of similar speed to that of the trunks in their network, it is generally best to dedicate facilities to each service to avoid congestion when multiple services send traffic at full rates simultaneously For Ethernet services, this generally implies dedicating a fibre or wavelength to each such service, in which case, it is much more cost effective for the provider to connect their customer directly to a transponder than to deploy additional packet switching equipment For multipoint services, EoMPLS still makes sense, however, as different flows across the access interface need to be switched to different destinations on the provider s network

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Income producers: Income producers are sellers who control (own) their accountsThe product they sell is usually a commodity and is, therefore, undifferentiated The value of the business is the contacts and relationships of the seller with his or her customers Normally, an income producer arrives with a book of business and if he or she departs, he or she takes over 80 percent of the business with them Income producers are paid a percent of the sales production Funding for the incentive comes from sales results Competitive market comparison is made by assessing percentage paid, not by actual dollars earned

Where carriers wish to offer a small number of Ethernet services and where they have existing infrastructure (for example, SONET/SDH or ATM), it is generally more cost effective to offer Ethernet services over the existing network platform rather than to deploy a new EoMPLS platform However, in general, carriers are migrating to IP and Ethernet for all services and to Ethernet as the common handoff to all services hence, this is unlikely to be a common scenario in future In fact, many carriers started deploying Ethernet services by using Ethernet over SONET/SDH or Ethernet over ATM and are now looking to deploy Ethernet over MPLS in order to enable mass deployment of those services

As previously discussed, Ethernet services are unable to scale Ethernet beyond the constraints of Ethernet itself It is generally unwise to attempt to extend an Ethernet segment interconnecting hosts (rather than routers) over the wide area, as Ethernetbased protocols and applications are designed to operate in the local area (for example, they often use broadcasts to discover local resources) When connecting across the wide area, a better model is often to place a routing device at the boundary between the WAN and LAN Of course, this is also possible with EoMPLS if the customer connects a router to the EoMPLS service (whether that is an E-Line service over pseudowires or an E-LAN service over VPLS)

We will now discuss the benefits of the Ethernet over MPLS technology, as well as some of its shortcomings

Sales representatives: Sales representatives sell a unique offering of the companyThe value to the customer is the company s products and services and not the salesperson Companies manage sales representatives pay to a target incentive amount For performance below goal, the pay is less than the target incentive amount For performance above goal, the incentive payment is above the target incentive amount

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