Sales Reps are great at selling but what good is a sale without getting paid? Paying your Sales Reps’ commissions only when their client has paid encourages them to assist in the collection process. Because the Sales Reps have built a rapport with their customers, often they can elicit a faster response than Accounting for payment inquires. The Sales Reps can use their frequent communications with their clients to drop hints such as “by the way, your monthly invoice was due last week and we have not yet received payment.” Once we changed our commission process, we had one Sales Rep who began contacting his clients only three days after an unpaid invoice was due. Previously, it was like pulling teeth getting him to assist with collections. He didn’t want his clients viewing him as the “bad guy.” Now he figures the sooner we get paid, the sooner he gets paid!
Commission Your Sales Reps Only When Invoices Are Paid
September 9th, 2008 · 2 Comments | 
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Tags: Best Practices · Email Marketing · Tips
2 responses so far ↓
1 Victor // Feb 27, 2009 at 12:49 pm
The process doesn’t have to be strenuous when it’s time to collect money from a client. Commission is a viable initiative for a business to get paid sooner, especially now with the innovative technology of email invoices. Another good invoicing solution is the use of business invoices and electronic invoices solutions from http://www.orangepoint.net. It’s will save you a considerable amount of time.
2 John // Jun 10, 2009 at 11:48 am
To the point and talking from experience.
This is a very attractive proposition to the executive levels of companies. However, not to your sales force, which I might add push product, services and create notes (invoices).
A company has legal rep. and a professional finance dept to ensure payment on note/invoices created.
To put this on your sales force is VERY de-motivating and counter productive.
A sales professional will pre-qualify clients prior to closing a sale.
A plug written for the executive levels without a doubt.
-John
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