So one of our reps got fucked out his commission after he resigned. This made me worried coz my target has been 5Xed, and the commission isn't that high.
Basically, I'm delivering last year's quota in a quarter now.
Now, I'm trying to make sure that I have a formal agreement with the company on my commission, coz of the recent experience with the ex-employee. In one of the terms -
- if I resign, then the company will only pay me commission after all invoices are settled, which can take a long time. let's say 90 days.
- in the meantime, I'm supposed to give them a cheque covering for 80% of the invoices, in the event that they don't get paid, so they can recover bad debt - LMAO ARE YOU FUCKING KIDDING ME? We're talking hundreds of thousands of dollars here. I haven't made 5% of the revenue I have generated for this company in my tenure. How am I going to write you a cheque for 80% of the pending invoices?
- Isn't the relationship between the company and the client? Sure, it's my job to sell and make sure we're paid on time (for which I lose money if we don't get paid on time - like this is in my control. we have clauses in agreements, but don't have a legal team to enforce this). But why am I supposed to pay out of my pocket if you as a company cannot recover payments from clients?
Couple questions for you folks -
- do you have a formal and approved commission structure?
- i have a meeting next week - how do you suggest I make them understand my perspective?
- what do you recommend? is this a common scenario?
- what are your horror stories?
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