Normal Business Practice?

[lukeskywalker]

Just a quick survey:

Is it standard operating procedure for my employer to cut my sales commission in half if the customer I signed up pays late (over 60 days)? They have just implemented this.

We have a bill collector so why should I be penalized if a customer pays their bill late? Isn't it up to the bill collector to collect on time and to get the customer to pay on time? What's the point in even cutting my pay because a client I signed up pays late?

Any thoughts welcome.

Thanks

[PattayaParent]

I know Toyota do it to their Thai staff.

Edit: But not by half, by 200 Baht a day.

Edited April 14, 2009 by PattayaParent

[andy1308]

I know some companies that don't pay commission until the customer pays, thus putting the emphasis on the sales person to become involved in facilitating a quick payment too. And from what I've seen it works well.

[Seizhin]

Depends on the individual companies.

I know a few (huge) "Family" companies who uses the same system, but that was because they dont have any collectors. I cant comment much on this, but it's possible, puts the company in advantage, and you on a disadvantage.

[harrry]

Depends on the individual companies.

I know a few (huge) "Family" companies who uses the same system, but that was because they dont have any collectors. I cant comment much on this, but it's possible, puts the company in advantage, and you on a disadvantage.

Big company I once worked for in Australia did this. Commisions were paid into a holding account and only about 45% was paid out to enure that all contracts were completed. It meant I still got paid for 2 years after I left but did not get an commission unless the customer paid.

[quiksilva]

I know some companies that don't pay commission until the customer pays, thus putting the emphasis on the sales person to become involved in facilitating a quick payment too. And from what I've seen it works well.

Yup we do this and it works great!

[teacup]

Just a quick survey:

Is it standard operating procedure for my employer to cut my sales commission in half if the customer I signed up pays late (over 60 days)? They have just implemented this.

There is no “normal” practice nowadays when it comes in trying to stay afloat for many businesses.

The answer to your question is based on the questions of…

Does “your contract” with the employer states that commission is payable only if the customer pays…… Or whether the contract stipulates payment of commission irrespective of customer payment?

So no matter when has your employer implemented this,…

the question is….what does your contract with them say….in writing. They just can’t force it down your throat, unless you’re also agreeing to this new contract.

If you don’t like it…..then WALK!!!……

Then again…..any employment nowadays is also hard to come by

Me thinks here

Edited April 17, 2009 by teacup

[lukeskywalker]

Thanks for all the feedback.

The problem with "just walking" is that I would lose my monthly commission money so that isn't an option.

Good point about if this is something in my contract. I checked and it doesn't say either way. It just states what % of sales I make I get as commission.

I'm not complaining about having this work. It is fairly easy money. I spend an hour or two with a client, sign them up and then get a nice commission every month for the length of their contract (3 months to a year). And if a customer renews, gravy!

It's the easiest money I've made but it doesn't mean I want my employer to unfairly cut it.