What should salespersons avoid when budgeting for remuneration?

When budgeting for remuneration, salespersons should avoid making expenditures based on potential remuneration from transactions that have not yet closed. This practice is risky because it relies on income that is uncertain and may never materialize. Making financial decisions or expenditures based on this potential can lead to financial strain or mismanagement, especially if the anticipated transactions do not close as expected.

Sound financial planning should always be based on actual income rather than projections. By focusing on confirmed earnings, salespersons can make more informed and stable financial choices, ensuring they do not overextend themselves while awaiting potential deals to finalize. This approach fosters a more sustainable financial strategy that can help during lean periods or when transactions take longer than anticipated to close.