Isliceonpurpose

Senior Sales

Valued Contributor

Member

Good Citizen

Comm payment

Hey all,

Has anyone ever had commission held back for 12 months due to acceptance testing?

Even better if someone has had the above happened and subsequently left the company and clawed back the commission?

Searching for guidance here legends!

🧠 Advice

18 comments

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CuriousFox

WR Officer

🦊

No. @poweredbycaffeine you heard of this? 🤔

poweredbycaffeine

WR Lieutenant

☕️

What in gods name is this?

CuriousFox

WR Officer

🦊

Well you know I'm clueless 😆

braintank

Politicker

Enterprise Account Executive

What is acceptance testing?

Pachacuti

Politicker

They call me Daddy, Sales Daddy

It’s a software/ tech thing typically. One step beyond QA. Sometimes, depending on the contractual language, they can pull out during this time.

goose

Politicker

Sales Executive

Sounds like a proof of concept. I'd expect to have commissions delayed only if it was explicit in the compensation plan.

Sunbunny31

Arsonist

Sr Sales Executive 🐰

12 mos is a long time to wait to be paid. I'd do what's advised, see what's in the comp plan specific to payout after your departure.

1nbatopshotfan

Politicker

Sales

Read the comp plan and have a lawyer look at it if it’s not clear.

Pachacuti

Politicker

They call me Daddy, Sales Daddy

If you left the company after they paid you how did they pull back the payment? If that’s the case, I would reach out to an employment lawyer.

Isliceonpurpose

Valued Contributor

Senior Sales

Hey Pachacuti,

Not left yet, I’m about to join another company and now being told I have to wait 12 months to be paid.

TennisandSales

Big Shot

Head Of Sales

what does it say in your contract/comp plan? does it address this at all?

Pachacuti

Politicker

They call me Daddy, Sales Daddy

Generally if you leave a company prior to being paid on something, you won't get paid.
Also, generally, a rep doesn't get paid till the company gets paid. Sometimes there is some upfront $$ but if the company doesn't get paid till after acceptance testing, the rep will have to wait as well.

I once left a job that were the company owed me a $20k commission payment, but I wouldn't see it for another 1-2 years due to the implementation schedule.

TennisandSales

Big Shot

Head Of Sales

depends on the commission schedule. If its quarterly commissions, and the deal closed in month 1 of the quarter and you leave in month 2 of the quarter you SHOULD still be paid on that deal even after you leave since you were employed during the time the deal was closed

TreTime

Catalyst

Account Executive

If I understand this right, your contracts you're selling have a 12 month clause in which the customer can freely pull out of the deal?

DungeonsNDemos

Big Shot

Rolling 20's all day

How are you normally paid? That is a LONG delay. I've had month delays where the $$$ had not been collected yet (unpaid invoice), but not 12 months.. damn

E_Money

Big Shot

💰

Sounds like a bunch of malarky to me. I would definitely jump shit.

Diablo

Politicker

Sr. AE

Never heard or waited so long

AnchorPoint

Politicker

Business Coach

WTF? What does your agreement say about this???