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Are claw backs legal when the account is past due?
Our small sales team is paid 100% commission on gross margin. Sometimes, we claw back commissions that were paid after the customer is past due and in collections, is this legal?
What type of itemization/documentation is an employer required to provide to sales people paid variable compensation?
There is no requirement to provide documentation in the US in most industries. You are free to provide additional compensation whenever you’d like, based on whatever criteria you establish (or change). However, to maximize the motivational value of your plans…
An account may become past due after commissions are paid. What are the options?
Sometimes customers return products, or they just don’t pay. As a result, some companies do a charge back on commissions paid to the sales person on the sale. The legality of this practice can vary…
What is considered “best practice” with regard to payout eligibility and employment status re: incentives and contests/SPIFFs?
My answer is different for contests and SPIFFs than for core incentive components. For core components, give some thought to what you’re trying to accomplish with your eligibility requirements…
Hiring your first sales person
For most small companies, your first sales hire is hard to do well. You don’t have a sales leader to help you confirm you have the right skills and temperament for the job. You’re not sure what to expect in terms of productivity…