(Tech-specific) normal to get paid commission after customer pays?

Commissions used to be paid xx days after signed order/proposal came in. Then clawed back if customer doesn't pay etc.

2022, 2023, and 2024 hit and now only getting paid when customer pays.

maybe was just lucky in my old role, but what's the norm these days?


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16
Pachacuti
Politicker
9
They call me Daddy, Sales Daddy
In my experience, its very common to get paid only after the customer pays.
Gasty
Notable Contributor
1
War Room Community Manager
Yup
buyhighselllow
Good Citizen
0
sales
Thanks!
DungeonsNDemos
Big Shot
1
Rolling 20's all day
This is what we do and it sucks because implementation can easily slide into additional months because our services team bills by time and labor. They're happy to keep working but it fucks over sales by delaying start dates.
medhardwaredr
Politicker
7
Director of Sales NA
Hardware youโ€™re not paid until it delivers. Delivers June 20th? Paid last week of July
buyhighselllow
Good Citizen
1
sales
Thanks!
Sunbunny31
Arsonist
5
Sr Sales Executive ๐Ÿฐ
It varies. Big company: it was the first of the month a month after the sale. Example: sell on 28 June, get paid 1 Sep. Clawbacks from time to time.
Smaller company: Paid first of month after customer pays (definitely made you pay attention to net-payment terms!). No clawbacks, because money is in hand.
Smaller company: Paid the month after QE. Quarter ends 30 June, you get paid for all Q sales 1 Aug.
Pros and cons to each, but certainly makes you budget properly and not count on a commission check.
jefe
Arsonist
3
๐Ÿ
Succinct breakdown that applies to a lot of situations and most companies.

Basically, @buyhighselllow , it's normal. Even though it kinda sucks.
buyhighselllow
Good Citizen
1
sales
Thanks for the insight!
saaskicker
Tycoon
3
Enterprise AE
Yes - the norm.
buyhighselllow
Good Citizen
0
sales
Got it! Thanks!
HVACexpert
Politicker
3
sales engineer
Yes
buyhighselllow
Good Citizen
1
sales
Thanks!
buyhighselllow
Good Citizen
1
sales
๐Ÿ‘
braintank
Politicker
3
Enterprise Account Executive
I get paid the month after we get PO.
buyhighselllow
Good Citizen
0
sales
Thanks!
Diablo
Politicker
3
Sr. AE
Get paid after a month of receiving the order. Paid on the 1st.
oldcloser
Arsonist
2
๐Ÿ’€
Yes
buyhighselllow
Good Citizen
0
sales
Thanks!
QWhiz
Tycoon
2
Founding AE / ex-SDR
What'd you prefer? Commission on PO and clawback later? Or commission on customer payment and clawback never?
buyhighselllow
Good Citizen
0
sales
Iโ€™d prefer getting paid when the signed order form/deal comes in since Iโ€™m not part of the Ap/delivery team. Of course happy to help, but donโ€™t want my money being delayed because of other peopleโ€™s incompetence.. right?
CuriousFox
WR Officer
2
๐ŸฆŠ
Yes this ain't anything shady or new โค๐ŸฆŠ
buyhighselllow
Good Citizen
0
sales
So guess Iโ€™ve just been lucky in past roles.
Beans
Big Shot
1
Enterprise Account Executive
I only get paid after a PO is provided, some times our terms are net 90 etc, so no that would be untenable.
buyhighselllow
Good Citizen
0
sales
Thatโ€™s what Iโ€™m sayingโ€ฆ thought this was the norm, but guess companies rather have the money in the bank before paying their sales teams
TennisandSales
Politicker
1
Head Of Sales
yeah this is common. especially in tech and in start ups. I think its probably even more common now that companies are more focused on profitability and less focused on growth at all costs.
buyhighselllow
Good Citizen
0
sales
Thanks!
SerialBiller
Executive
1
Enterprise Account Executive
In my company, it's an annual bonus! Once a year end of Q2 in arrears ๐Ÿ˜†
buyhighselllow
Good Citizen
1
sales
Wow! That sounds terrible, how do you cope? They also have you by the throat; if you leave, you forfeit all that $$
SerialBiller
Executive
0
Enterprise Account Executive
To be honest, it's the first time I've had this setup but it also gives me some peace of mind not to have to worry about hitting monthly targets as our sales cycle is 9-12 months typically for larger multi year agreements, so it depends what you like I guess .. personally I'm finding it quite relaxing after a lifetime of aggressive, short term goals ๐Ÿ˜Œ
23
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