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by jagged-chisel 292 days ago
That’s antithetical to “this period’s bonus.” Who cares if it dies in three months when the bonus for that three months end up in the salesman’s pocket?
2 comments

Why would you be paying a bonus for deals that die? Sales incentives need to match business incentives or you’re completely screwed.

Also: “Coffee is for closers”

You can’t make sales people responsible for the entire company, that’s CEO- and board-level responsibility.

If you don’t give sales bonus for clients that later canceled due to engineering or tech support fuck up, do you expect regular sales people also to do engineering and tech support management in your company?

As a counterpoint, my company pays engineers a bonus only if sales brings in enough revenue…

I’ve always hated “team objectives” as such tend to be far outside an individuals control.

It is only a counterpoint if you claim that this compensation scheme works well. If you don't think it makes sense, then it actually proves my point that bonuses should only involve things that directly depend on employee's own performance.
Definitely agree with you there, perhaps choose the wrong word.
That’s not how it works, you structure the comp such that the sales person doesn’t get paid out in this case.
Is it fair for the company to have received three months of payments from a customer but the salesperson doesn’t get commission at all? How will you retain sales staff when word gets out? What’s the period length over which if the deal dies the salesperson doesn’t get their commission? Do you roll back commission payments later when the customer stops paying?
Yes you clawback commissions. It’s a very common practice.
These are all great questions which people have answered and it’s the standard solution to the problem of misaligned incentives between the company receiving recurring revenue and the sales person receiving an upfront commission.