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How should my commission be paid to me?

OK, let's say I do a sizeable deal with a customer, but they are going to pay over 12 months with interest.

Should I get my entire commission up front or over the 12 months? My boss is saying he wants to pay it over to me monthly, but how the customer chooses to pay is nothing to do with the fact that I got the deal in is it?

Thoughts, experiences please!

6 Answers

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  • 1 decade ago
    Favorite Answer

    This is something that is between you and your employer. He is not obligated to pay you in a lump sum up front, because the sale which generated the commission has not been actualized yet as he does not have the funds. So, paying you monthly is well within his legal rights. If he is willing to pay you interest, that is a bonus for you, he is not obligated to do it unless he is over 30 days in paying your commission from the date he receives payment from the customer.

    As to the poster that said that you would not receive your commission if you quit or were fired, this is completely wrong. A commission based pay is no different than actual hourly wages. Your employer would still owe you for the commission as that would be considered earnings. You could always complain to your state Wage and Hour division.

    The earlier poster that asked about your initial agreement with your employer asks a very good question. It would all hinge upon your original agreement. But, like I said, the commission is not actually made until the sale is processed. The customer bought something with terms of credit, so until cash is exchanged for that particular goods (or service) the transaction is not complete until payment is actually made.

    At this point it is an open ended contract of sale with the customer.

    Hope it all works out well!

    Source(s): I work for a State Dept of Labor
  • 1 decade ago

    You are correct in that the customers choice of a payment plan does not change the fact that you have the deal. But, do you have an employment contract? Could it be that you have agreed to being paid in this manner when you started? You must also consider your relationship with your boss and your position. He may start giving the more sizeable deals to other salespeople who are more agreeable and leave you with smaller deals if he feels you are not cooperative and the others are. What if the customer defaults after paying 25% of the total and the product reverts to your company but you were paid 100% of the commission and then you sell it again? Would you accept less commissin on the second sale since you were already paid fully once you really could only expect the 25% on that one. I just think there are many things to consider here. In that default situation your boss (Having already paid you a full commission) will have to have you and you alone sell it again since he could not expect others to do it and not be paid and what if you are unable to sell it, can't find a buyer, have to sell it for even less than the first time etc. I think you should get your commission but I think your discussions about the manner of payment should be reasonable and well thought out on both sides.

  • 1 decade ago

    well this is another issue based on hired criteria. if the HR policy states you are paid on commissions based on dollars earned then the company has not earned monies until the end of the month of the contract. If the contract is contingent on your supporting the contract then they might bail out and I as a boss would not pay you for not keeping the contract viable.

    So ask yourself how you made your hiring agreement with your boss and be a better negotiator next time. Learning Point.

    Oh yeah what if the Deal is illegal in some manner, then the boss could take all legal cost incurred out of your monthly commission check "right?" there are all sorts of reasons why your boss is being prudent.

  • Anonymous
    1 decade ago

    If your boss chooses to pay you over 12 months, he must pay you with interest too. That's your commision + an average savings account interest of 2%. That is why most often employers will give the commision straight out, so they keep the interest.

    Contact your Department of Labor for laws and articles on it. Produce the law in writing to your boss. This could jepordize your job, or insure he doesn't fire you depending on your state's employment laws (no-fault states can fire for no reason at all and replace workers for less pay).

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  • 1 decade ago

    TAKE THE COMMISSION UP FRONT, BC BOSSES ARE SNEAKING, BY PAYING U MONTHLY THEY COULD FIRE U AND U WOULDNT GET YOUR ADDITIONAL MONTHLY PAYMENTS, TAKE THE LUMP SUM UP FRONT!

  • 1 decade ago

    Monthly payments is practical.

  • 1 decade ago

    What was your arrangement with your boss when you took up this job?

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