Commission Policy

Chris from VA

Could you share your commission policy regarding employees who resign or are terminated?

marc

You might need to fill in a bit more background to get meaninful responses, but in a general sense, if they made the deal and it closed, they get the commission. If another sales rep has to pick up the contact and complete the work, then a pro rated commission structure could kick in depending on the level of work. From 50% down to 0%. You have to define various levels in your closing process to be accurate here. Consideration to who generated the lead, how far into the sales process were they. How many steps between the lead generation and the close of the deal?

To avoid issues, spell it out in their contract or in your commission pay structure.

HRH

We have salespeople sign a form on the first day outlining commissions. Upon voluntary or involuntary termination, for orders entered (with a deposit) but not invoiced (not yet delivered), commission will be paid @ 50% once the company has been paid in full. For orders entered and invoiced, commission will be paid at 100% once the company has been paid in full. For orders which have not yet been entered, no commission will be paid.