Commission Question

[oliviapope]

If you worked for a small company and are commission only, how long would you expect to be paid commission after you quit (deals "closed" but money not collected)

Assume no contract.

[y4m]

It would depend on how the commission agreement was structured so that's hard to answer. Even if there's no contract, there must be an agreement of some kind, right?

I can tell you that at my company, once a deal is sold, commissions are earned pending the collection of that money. So if I close something this month, I'm getting paid that commission when that money gets collected, whenever it happens, even if I'm no longer with the company, because that's the deal when I close something.

How are commissions treated for people staying at the company? Maybe sharing that could give us some sense.

[iheartbanjos]

I would think that would vary from company to company. I'm not commission only, but receive a percent on some items. I don't receive payment until the invoice has been paid by the customer.

[emilyinchile]

Ditto y4m. In my business, if I close a deal tomorrow with the contract signed and quit the day after tomorrow, I still get 100% of my commission from that deal. Do you have any type of agreement at all, or is it totally verbal? Is there an industry standard, or are there other people at your company who also get commission?

[oliviapope]

It is for my brother. He works for a family member and gave notice today. Family member is willing to pay all commissions on invoices from today prior. Brother is so pissed. He wants to keep working until end of year and feels like he is "losing out" on invoices due to be sent after his notice.

I think he is be irrational and his current deal is fair.

[y4m]

Dec 18, 2014 15:26:38 GMT -5 oliviapope said:

It is for my brother. He works for a family member and gave notice today. Family member is willing to pay all commissions on invoices from today prior. Brother is so pissed. He wants to keep working until end of year and feels like he is "losing out" on invoices due to be sent after his notice.

I think he is be irrational and his current deal is fair.

Did brother directly do anything to create/earn the invoices that would go out later in the year?  Like are they sales that he's gotten himself that just haven't had the logistics of billing happen yet (but will).  If so, he's got a point.

On the other hand, if this isn't really a "do something, earn a commission" situation but it's more "we all take a small commission on everything and that's part of your compensation," then I'd say the business is free to cut him off when he leaves.

[jennistarr1]

I think if you earned it, they should pay it to you

[spidervain]

Agree with others that this would be company/contract specific. My position pays out commission monthly on any invoices that were billed the previous month. If I worked until 12/18, I would expect to receive commission on any sales that I made prior to 12/18 that were invoiced by 12/31. If the deals were closed after 12/18 or invoices after 12/31, I would not expect the commission.

[gibbinator]

At my previous company there was a 30 day waiting period because you only received commission on a sale if the customer kept the service for 30 days. So if you left the company before the 30 days were up you forfeited the commission.
It was well documented in the paperwork exactly how, when and if you received commissions on sales.

[oliviapope]

The commission is not paid until funds are collected. Others in the company have contracts stating that if they terminate the relationship then they are owed on anything that has been collected. If it was invoiced but not collected then they leave it on the table

I think this is very typical of this particular type of sales. He is being offered to be paid for everything invoiced-not just paid. He seems to want to continue to be paid on other invoices he is "holding" (however the money wouldn't be collected by the time he leaves).

[y4m]

If he has signed deals where he created the sale and now they just need to be invoiced, at my company he'd be paid for that--even if the actual money comes in after he left.

[oliviapope]

Dec 18, 2014 22:42:36 GMT -5 y4m said:

If he has signed deals where he created the sale and now they just need to be invoiced, at my company he'd be paid for that--even if the actual money comes in after he left.

I guess this is why he is so mad, so thanks for the perspective.  I just think that he needs to submit the invoice.  He has not done that.  He is "holding" the invoice because the company asked him to, and it will be submitted after he leaves.  That to me seems like the company is fair in not paying him for an invoice that is submitted after he leaves. 

[treedimensional]

When I was commissioned I collected weekly and never had to wait for any checks to clear. Pay was always based on anticipated revenue from the previous week.