Life-long question. Pay reps when they sign a deal or hold commish until the client pays?
TheMatador19
Pay on signing or pay when paid?
7
Would you rather get paid upon signing and have to pay back the commish when the client never pays? Nah, pay me when the check clears...you're not getting this back.
Horror story: clawback happened to a former colleague after he had already spent the dough, couldn't return the item (plane ticket and hotel room in Japan) and he had to pay back the company with small draws on his future commission.
Horror story: clawback happened to a former colleague after he had already spent the dough, couldn't return the item (plane ticket and hotel room in Japan) and he had to pay back the company with small draws on his future commission.
Reps should be paid when an invoice is sent out in my opinion.
Pay on signing. Shift the risk to the company, it Makes for a much better on boarding experience from the client so they are not hounded by a rep asking when they are going to implement product. Also makes for a better rep experience because they are not under “as much” pressure to have client implement and then can focus on new deals.
I guess that depends on your customer onboarding process...but again, as I pointed out in my comment: how would you feel if you took up a fat $10k check and had to pay it all back because the client never implemented the product? The company won't let you slide.
Very true but as the rep you’re still responsible for making sure the client crosses the finish line. Each one holds the rep accountable but one I believe is overall better for the client on boarding experience.
I would prefer the later because as a human I am lose adverse and hate having things taken away from me. But that being said right now its kind of a mix between the two. We get paid out at the end of the month after the quarter closes (so quarter ends June 30, we get paid July 31st). It's after the rep signs a deal but in some cases clients have yet to pay.
My company does a 50/50 split. Half paid upon receiving a PO and the other half dispersed upon the bill being paid. Company before that was 25/75 in the same above timeline.
Definitely when the money comes, you never want to return or take money from the rep.
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