Interested to hear how clawbacks work at your firm? My firm has up to a year to claw back and I find it to be a bit much.
Standard Clawbacks
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So my company instead of doing clawbacks does a 60 day hold. So after invoice and payment they will hold commission for 60 days before being eligible to pay out. This helps prevent clawbacks coming in as if something comes up it just get deducted during the 60 day hold. Obviously the delay is annoying but I’d rather do it this way than fight claw backs.
I work at a small family owned company if that helps/makes a difference.
I work at a small family owned company if that helps/makes a difference.
I like this system so much more. At least you know it’s 100% yours!
@hvacexpert what’s crazy is that we have a 90 day hold and clawbacks still enforceable post 90 days!
That’s extremely lame. Jesus Christ.
Yeah I’m not saying it’s not possible but by the time it invoices , pays , plus 60 days, most of the time “clawback” are done.
That’s the way
Not uncommon for it to be a year depending on the deal size and contract length but that would thoroughly annoy me.
Mine is pretty much if they decide they hate us during implementation (this happens often) then lol you owe that commission check back and you’re now in the negative. This could be 3 months from the contract signing and sometimes up to a year.
Mine is pretty much if they decide they hate us during implementation (this happens often) then lol you owe that commission check back and you’re now in the negative. This could be 3 months from the contract signing and sometimes up to a year.
This is why I refuse to work anywhere that has clawbacks. I can't imagine owing a company money for a deal I closed. If anything, Product/Accounting/CS should be on the hook if things go upside down in a situation where customer's unhappy or doesn't pay.
Fully agree others should be on the hook. If Implementation doesn’t give a shit and refuses to do their job in a timely manner then why am I the one to lose money? Also same goes for CS. If they can’t answer basic questions or help clients why do I get the hit? It makes no sense.
Previous company provided all contracts with a 60 day out clause. If it churned in that window the money was coming back. If it occurred after 60 days it was viewed at as business decision on our part to allow them out of contract and there would be no claw back.
I don't hate this 🤔
It works as long as accounting keeps up with it. At one point they dropped the ball and “forgot” to execute clawbacks for a few months. One of the reps didn’t get commission checks for 6 months as a result.
We get paid after the customer pays the initial invoice.
I have never heard of a clawback here.
Downside: waiting for that initial payment.
I have never heard of a clawback here.
Downside: waiting for that initial payment.
YES. Secure but the necessary patience is killer.
And if the PO and/or invoice are late...have mercy.
We’re paid out quarterly too, so the ramifications can be SO DAMN LONG
Oh, that bites. Mine are monthly (paid Dec, see the check 1 Feb payroll) at least.
Lucky bunny
Pray that invoice gets paid! Or it will be February…
Can't remember the last time I had a clawback... If ever
If a deal was misaligned by sales with a clear lack of care/knowledge or if the deal churns within 90 days of sale than it is in the clawback for most orgs. 1 year is insane
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