Employees that work on commissions, how common is it for a business to cheat employees, or twist the rules in favor of another long-term, or favorite employee? I’ve heard stories, but does this really happen?

In B2B companies, commission plans almost always have a clear clause that they are 100% subject to the discretion and judgment of the company.

I don’t see much cheating in SaaS companies. But a few things I see at the corner:

  • First time CEOs sometimes get frustrated when a rep makes “too much”. This is backwards. More on that here: Your #1 Sales Rep Should Be Driving an M6 Convertible By Month 12. (And Not Buying a Panerai Watch.) | SaaStr
  • Companies don’t want to pay reps that leave. This is pretty common. Assume if you leave, you may not get any commissions for deals “in flight”.
  • Double credit vexes many companies. What if the channel or a partner and a rep both say they closed a deal? Do you pay both? Oftentimes, you sort of need to. But many companies don’t, or split it.
  • SMB SaaS can struggle with attribution. If the customer really closed itself on line, do you pay the rep? Sometimes? What if the rep did a quick call, but really no work?

Some grey and higher drama areas you see often.

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Published on December 7, 2018

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