I found your short article about the #1 Rule To Avoid Commission Cuts and found it to hit very close to home. I have a current situation with a principal located overseas that repeatedly takes a very lackadaisical approach to paying commissions due on time. When commissions are paid, there is a very vague accounting of the rate of commission. It does become one of these “take or leave it” situations.
Something I thought might be worth pointing out is that my state’s Sales Representatives Contractual Relations Act which protects reps against principals who don’t respect our rights. In the act, (as I assume you are probably very aware) it is stipulated that a principal is legally required to provide:
- An accounting of the orders for which payment is made, including the customer’s name and invoice number.
- The rate of commission on each order.
- Information relating to any charge backs included in the accounting.
I have recently brought this to the attention of my “lackadaisical” principal in a very strategic context, using the guise of the possible ramifications that might fall on them regarding such entities as my local taxing authority. I have given an example of my possibly being audited and having to tell the my local taxing authority that, “Though I have repeatedly insisted on detailed accounting of incoming commissions, my principal has still not provided this.”
I know that perhaps it might sound like a “threat” to a principal but I think that reps need to know that some state legislatures have actually has put such an Act in place for our protection…
Just my two cents.
VERY glad to be a member of MANA, and I thank you for your time in hearing my angle!