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skiiipp

AM (Account Manager)

Contributor
Member
Good Citizen

Commission on payment

keen to get your thoughts, 

Im an AM and secured a deal at the end of Q4 23 for additional license for a client through till end of the contract, roughly 2 years worth.

which means Im owed about 20k worth of commission for this. As they have done previously my company pay out in the following quarter i.e this month (Jan) for the whole amount due. Instead they have said they wont be paying out in one lump sum but rather as the client pays per month.

My feeling is that its in contract so waiting per payment means I need to be here for the whole 2 years to get whats due and feels more of a tactic to keep people from leaving in order to collect commisons cheques.

keen to get your thoughts? or any approach you may consider taking on this one to realise more of the commission sooner. 


🧠 Advice
🍾 Commission
💴 Money Management
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14 comments

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jefe
Arsonist
8
🍁
A lot of companies pay commissions as payment is received, unfortunately.

@braintank asked the most important question - what is the wording on your comp plan? If it's not clearly delineated that you're paid on signing/invoicing, then they pretty much have the power to pay you out this way.
CuriousFox
WR Officer
1
🦊
👀🍿
braintank
Politicker
4
Enterprise Account Executive
What does your comp plan say?
skiiipp
Contributor
0
AM (Account Manager)
It makes no mention that they will pay commission as they receive payment. In the past, they have paid these types of deals out in full although the value has been smaller (~10k)
braintank
Politicker
0
Enterprise Account Executive
Then I think you have a reason to gripe
NoToBANT
Catalyst
2
Senior Account Executive
It’s not about how they have historically paid - it’s all about what’s on paper

If your contracts reads: you shall get paid as client pays, and they’ve historically paid upfront - they did it as a gesture of goodwill

If it’s written in the contract that it’s paid upfront - then they have an issue

Read your contract
Pachacuti
Politicker
2
They call me Daddy, Sales Daddy
My company pays me when they get paid. Not a moment sooner. And its clearly spelled out in my comp plan.

What's in your comp plan? Do they pay it out all at once at the beginning or end - or periodically over the course of the contract.

Yes, you generally have to be there in order to collect commissions. But residuals are VERY nice. You get a few of those going and its easy street for the next couple years.
SalesBeast
Politicker
2
Sales Leader
Monthly payments typically means monthly commission payouts. Companies will sometimes stiff paying their bills, therefore your company might then be paying you for something they do not get paid on.
Easy solution; only sell annual deals.
What they are doing is fair. Your org wouldn’t go to court to fight a contract only worth 100-200k (my estimate of this deal size).
Kosta_Konfucius
Politicker
1
Sales Rep
What was there reasoning for doing this?
skiiipp
Contributor
2
AM (Account Manager)
They’ve not given any reason. Ive gone back and queried why this is the case and asked if the AEs are paid out on the same basis.
unclespacejam
Politicker
1
ur dad’s brother
Usually the intended reason is to align commission payout with how the recognize revenue. My org does this.

It’s also a convenient side benefit that it means you have to stick around to receive your full commission payout as well. That’s how they get ya bud
Mobi85
Politicker
1
Regional Sales Manager
Sorry man, yea the comp plan should have it laid out for you like others have said.
Sunbunny31
Politicker
0
Sr Sales Executive 🐰
Sorry, dude. Are you guys having cash flow problems?
AnchorPoint
Politicker
0
Business Coach
What does the commission document that you agreed to say? It is not unreasonable to assume that the company structured commissions in their advantage.

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