Commission payout

Has anyone ever worked at a company where the commission is paid out AFTER the customer receives the invoice?


If so, how do you track that? Are you paid a partial commission with a down payment?

💰 Compensation
🍾 Commission
13
SaaSam
Politicker
4
Account Executive
My commission pays out on the 15th of the month following the month we received a wire from our customer. So if we received a wire for 100k today it's because the invoice went out sometime last week and I'll get paid the 15th of August.
jefe
Arsonist
3
🍁
My last company paid out commission on the license when it was paid, and then billed time and materials for the actual dev work, and paid when those funds were received.

There was also no transparency, so you just had to trust. It wasn't a good situation.
Pachacuti
Politicker
3
They call me Daddy, Sales Daddy
I don’t get paid til my company gets paid. Usually the first pay period in the following month.
Sunbunny31
Politicker
2
Sr Sales Executive 🐰
My commission is the first paycheck of the month, following the month the customer paid the invoice. Example: customer pays in May, review is June, I am paid 1 July. What's great is no clawbacks for non-payment, as you just wouldn't see it anyway.

Tracking? I maintain my own spreadsheet, we use an online company (Xactly, which isn't great, but I can see what they think I have closed) and I get auto emails to inform me of incoming receipts.
CuriousFox
WR Officer
1
🦊
How long does it take for a new invoice to cut?
Angusmacg
Valued Contributor
0
Territory Account Mgr.
still finding out but we do require a down payment (10% it think) before shipment and then it is invoiced (minus the down payment) on delivery with Net 30 terms.
Justatitle
Big Shot
1
Account Executive
Most often practice I’ve seen is the AEs are paid once the client pays their bill. We may not like it but it is the fairest possible outcome. It’s great when it’s based on bookings which I have also seen however getting paid once a client paid does make sense and there’s really no argument against it
Angusmacg
Valued Contributor
0
Territory Account Mgr.
I’ve always been paid at the time of invoice with the possibility of clawback for nonpayment. In sales it’s all about the “now” money not the “to come” money. Being paid after a client pays forces the salesperson to be involved with accounts receivable and there is a different dept. with a different reporting structure that should handle that.
TennisandSales
Politicker
1
Head Of Sales
yes, ive had to do this and it was so annoying. I had to keep calling and following up to get invoices.

I always viewed it as the company trying to save money by not hiring a finance department.

i would use spreadsheets to make sure i kept track of everything. it got complicated and commissions were always screwed up.
StringerBell
Politicker
1
Account Executive
I get full commission the month after signing, doesn’t matter if they paid or not. Works out most of the time
SaaSslinger4ever
Fire Starter
1
Sr Enterprise Account Executive
This commission structure seems to be a mess and ultimately allows the "house", ie your company to win....sounds like there could be internal cash flow issues.

I had one company who paid 50% commission the month after contract execution and then remaining 50% when customer paid the invoice, which could be up to 3-months later. Trying to monitor this in Salesforce or spreadsheet was a heavy lift and not what any organization should be having their sales staff do. Same in your situation, IMO.

So, my advice, be sure to stay on top of when the invoice is sent and paid!
bassinshaps
Politicker
0
Territory Sales Manager
Full commission paid after invoice. Down payment doesn’t count.
Kosta_Konfucius
Politicker
0
Sales Rep
I have definitely heard of it, but not worked at a place that did.
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