The War Room
Question
Post

How does your company handle closed deals who don't pay?

Current company will pay us out on commission and if they prospect fails to pay for the entire term we then are clawed back + deducted from our quota attainment. How does your company approach these situations?


πŸ’° Compensation
14
CoorsKing
WR Officer
+11
King of the Coors Knights
No impact on the rep at our company, customer goes to collections. I have never actually heard of someone not paying though
saaskicker
Big Shot
+10
AE
We send them to collections and also get penalized.Β 
Rallier
Politicker
+9
Account Executive
That’s insane. Rep shouldn’t be punished for that
Justatitle
Politicker
+8
Senior AE
We get paid when our client pays. It’s actually a good policy IMO. However, we do not get penalized on quota attainment if they don’t pay.Β 
saaskicker
Big Shot
+10
AE
I like this policy, at least you keep the attainment.Β 
Justatitle
Politicker
+8
Senior AE
If I’m being honest it’s a fair policy. I’d prefer to just be paid on it booking as it’s not my job to collect and obviously the people we sel to are not the AP department. But again it is fair
braintank
Politicker
+6
Enterprise Account Executive
This was one of the reasons I left a previous company. They changed the comp plan to reflect: "you don't get paid until we get paid". Problem was they only had 1 part time accountant who was too busy to be bothered with AR duties. Situation became untenable.
CuriousFox
WR Officer
+11
Senior Account Executive
No clawback on me that's not my problem. πŸ‘€
SlinginSoftware
Politicker
+7
Account Executive
I think we claw back eventually, but it has to be outstanding for an long time. It’s never happened to me or anyone that in know of.
Ch
ChunkyButters
Politicker
+5
AE
Claw back after a specific time frame.

Should incentivize a rep to sell proper fitting deals to qualified companies. Budget for the project is part of qualification.Β 
SaaSguy
Politicker
+5
Account Executive
Same at my company. Almost had a scare recently, but luckily no claw backs yet.
CharmingSalesGal
Politicker
+7
Account Executive
My previous job had a claw back that sucked. Thankfully, it didn’t happen too often. My current job has the rule of β€œyou don’t get paid until we do” but also the CEO does not mess around with contracts and so far has gotten paid on every deal in one way or another.
bassinshaps
Catalyst
+5
Territory Sales Manager
Seriously? That’s awful. That’s collections problem to deal with.
GDO
Politicker
+7
BDM
My previous company only paid the rep when the invoice was payed.Β 
TheRealVladimirPutin
Opinionated
+5
AE
After a certain amount of time and warnings, their account is cancelled. If this happens within 6 months of the sale, 100% clawback and quota attainment deduction
NotInterested
Valued Contributor
+4
Business Development Manager
Take they ass to COURT!
NotInterested
Valued Contributor
+4
Business Development Manager
But they don't deduct us. We also get paid on comish once they pay their bill. So sometimes it's a bitch to get our money!
ppg
Opinionated
+6
SUPER-visor
No commish for us… don’t pay don’t get, as I do in the windows and doors, there is a 50% before production and the rest before delivery.Β 
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