Commission rates, what should I do?
Posted by Teanna Spence on Wed, Apr 22, 2009 @ 12:59 PM
You changed the plan. The rates have dropped from last year. Your '08 plans paid on cash receipt, but the the cash is received in 2009.
What rate should you pay?
Of course the rep wants to be paid the higher rate. This is a common issue when transiting from one plan year to another, especially if the quota is received at a point other than bookings.
Some of the things to consider when answering this question:
- What is the point of sale in which the sales rep receives quota relief? Booking, Cash Receipt, Invoice?
- What were the rules in affect when the quota relief took place?
- Is the rate determined at that time?
- Did the point of sale change between the old plan and the new plan?
Pay special attention when you are changing from a bookings based commission plan to a cash receipt based commission plan. Make sure you are not paying twice.
A well written plan will have the rules spelled out clearly. Deviation from the rules should be done carefully and need to be well documented. Keep in mind, many times the exception becomes the new rule when it comes to sales compensation.