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NutsBoltsNDeals

Account executive

Valued Contributor
Opinionated
Fire Starter
+3

24 month clawback?

I heard of a SaaS company that is adding in a clause to 2024 comisision plan. basically a scaling clawback up to 24 months. for example, if a customer churns at 18 months, 25% of commission is claw backed.

for context, customers pay annual payments (or sometimes monthly) that start 3 months into the relationship. 

does that seem fair? how are AEs suppose to prevent a churn 18 months after a customer starts? what is typical clawback terms in the industry? 
🧠 Advice
🍾 Commission
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29 comments

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poweredbycaffeine
WR Lieutenant
17
☕️
I’d leave that org faster than you can say Benioff
NoToBANT
Catalyst
9
Senior Account Executive
100% bullshit

I get it, if it’s in the first 3 and maybe even 6 months but 18m is a jokeeeeeeeeee
jefe
Arsonist
3
🍁
Seriously, how the fuck can you control or even influence that!?
Get out!
oldcloser
Arsonist
8
💀
They should add payroll deductions if the CEO buys a new house. If the VP of Sales’ Mercedes lease goes up, or if the CRO’s kid needs braces. Because, obviously, those things are also sales problems.

Fuqdat
Justatitle
Big Shot
6
Account Executive
Sell as much as possible then leave before clawback can happen...
Revenue_Rambo
Politicker
1
Director, Revenue Enablement
This 👆
balbazar
Opinionated
1
Enterprise Account Executive
Not worth the headache if they try to sue you imo
punishedlad
Tycoon
4
Business Development Team Lead
Do you have a customer service/client success/account management department? Curious how much AEs are involved after close.
If it's totally in the hands or CS/AMs, this is a bullshit policy. Churns are on them, not you.
NutsBoltsNDeals
Valued Contributor
0
Account executive
Yes, full CSM team
CuriousFox
WR Officer
3
🦊
SERIOUS NO MY BOI
Sunbunny31
Politicker
2
Sr Sales Executive 🐰
That’s a no. If they’re under contract, the contract is honored. And if there’s an out clause, why are you getting paid out on something that might churn? That’s crazy.
HVACexpert
Politicker
1
sales engineer
That’s some bullshit
Kosta_Konfucius
Politicker
1
Sales Rep
Thats crazy, most I have heard of is 3 months
NutsBoltsNDeals
Valued Contributor
1
Account executive
Thank you all for the responses! Hopefully just an oversight by finance team, but we will see when the official plans roll out…
Revenue_Rambo
Politicker
2
Director, Revenue Enablement
I doubt that’s an oversight. Sounds like something that was slipped in with the assumption that no rep would read the entire plan.
ZVRK
Politicker
1
Enterprise Account Executive
The moment the handover is done to the CSM team, that’s when your responsibilities as an AE should end.
pirate
Big Shot
1
🦜☠️ Account Executive
24 months is insane
TallR
1
Account Executivee
This is really unusual. Is your commission higher if you sell more than a 12-month contract? Typical clawbacks happen when the customer doesn't pay their original invoice, for whatever reason.
balbazar
Opinionated
1
Enterprise Account Executive
Hard pass.
Diablo
Politicker
0
Sr. AE
Never, it’s crap
CRAG112
Valued Contributor
0
Account Executive
Any company instituting a clawback because they lost a customer is looking to screw you any which way they can.

Definitely don’t sign that garbage and push back hard.
Irishman
Catalyst
0
Business Consultant
Wonder will they pay you back the tax you already paid on your commission...complete BS and I doubt actually enforceable if taken to court
SchemerStrategist
Good Citizen
0
VP Business Development
Ours is 12 months. With a typical implementation of 8 to 10 months it makes sense because the commission is based on 12 months of monthly fees. 24 months is ridiculous! We do occasionally loose one within 12 months but it is rare. If we get wind of trouble during implementation, we go back in and try and smooth things out. Whatever it takes!
NutsBoltsNDeals
Valued Contributor
0
Account executive
Yeah if anything, it should be tied to when the client is signs off on completion of onboarding
Jill_of_all_Trades
Executive
0
Sales
Ummm, that's BS. Run.
slaydie
Big Shot
0
Account Executive
This seems crazy! I have never heard of this before. RUN
ForecastReady
0
President & Founder
Wtf?!!! Run Forrest, run! That is bonkers!
0
Enterprise Account Manager for the Midwest
The longest clawback that I've seen is 6 months, but I've had friends with 9 month clawbacks periods. Anything more than that is way too long.
LightingLeader
Politicker
0
Specification Sales
Insane! Polish up that resume and gtfo

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