This flexibility allows inventive deal-making and imaginative revenue creation that is desperately needed when consumer incentive to pay for standard music formats is reduced.

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Until that point, Microchip had opted for the standard, incentive-heavy system, in which base pay represented 60% of sales compensation, and commissions accounted for the remaining 40%.

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Other California policies support storage more indirectly, she pointed out, including the Global Warming Solutions Act of 2006 (AB 32), the renewable portfolio standard, and incentive programs for self-generation, smart grid systems, and solar systems.

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And, of course, the opposite is true, too: the 8% standard gives banks a huge incentive to hold riskier assets.

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Buyers' agents have an incentive only to show their clients homes whose sellers offer them a standard 3% commission.

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