California’s revised Labor Code §2751 sets forth the requirements that companies must follow in communicating commission plans to California employees.
Paying commissions only when the customer has paid – this may not work any more in some states. Illinois and Maryland have awarded commissions to terminated employees for sales that were booked before they left, but for which payment from the customer had not been received.
California, a state already ahead of most in regulating calculation and payment of sales commissions, has put into law the requirement to document commission plans in writing effective January 1, 2013.
WorldatWork Sales Compensation Focus, March 2010 — “You get what you pay for.” If you pay for behaviors, you’re very likely to get them; if you pay for results, you will improve the chances of getting the needed results significantly.
October 2009 – New research indicates that, “Eliminating sales quotas boosts company profits says Professor Harikesh Nair. In one case, the new sales compensation plan without quotas resulted in a 9% improvement in overall revenues…”