Question: Eric Dempsey Associates (EDA) is a relatively small Public Relations/Advertising firm in Western New York. They recently shifted their strategic plan to focus almost exclusively

Eric Dempsey Associates (EDA) is a relatively small Public Relations/Advertising firm in Western New York. They recently shifted their strategic plan to focus almost exclusively on clients who generate $200,000 or more in revenue for the firm. There are six employees in the firm who focus exclusively on business development, identifying new client prospects and making “pitches” to these prospects about ways that EDA can help them. While the payout for landing these prospects is high, averaging four times the revenue of the typical EDA client in the past, the likelihood of getting these new clients is considerably lower. In the past the Development associates (as they are called) were paid heavily on incentive pay (4 percent of revenue generated by clients landed by the associate) along with a base pay that was 95 percent of the market rate for comparable jobs in Western New York. What changes do you think should be made in compensation to reflect changes in the strategic plan of EDA?

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