Home > Jobs > Commission Charge Backs

Commission Charge Backs

I'm hoping that you can help me. I have a client whose company is presently integrating a money back guarantee for their services. If certain agreed upon goals are not hit, the client gets their money back. What the CEO is saying that he presently wants to take commission back if they had to refund a client. The sales reps have nothing to do with the deliverable and would lose 100% of their commission if the team does not attain what they promise. He realizes it is unfair, but can't think of away to keep the reps protected and not have the work cost the company substantial money. Have your clients dealt with this? Is there a fair solution to sales people working with this kind of guarantee? Could any of you recommend alternative or resources to me?

Thanks so much!

- by The Dynamic Business
I'm hoping that you can help me. I have a client whose company is presently integrating a money back guarantee for their services. If certain agreed upon goals are not hit, the client gets their money back. What the CEO is saying that he presently wants to take commission back if they had to refund a client. The sales reps have nothing to do with the deliverable and would lose 100% of their commission if the team does not attain what they promise. He realizes it is unfair, but can't think of away to keep the reps protected and not have the work cost the company substantial money. Have your clients dealt with this? Is there a fair solution to sales people working with this kind of guarantee? Could any of you recommend alternative or resources to me?

Thanks so much!
We are subject to charge backs in our business as well, and when it happens it depends on who initiated the chargeback, the sales agent or the client. If we have a renewal, for example, and "carry" the client or renew without money... the agent eats it all. If it is because of an audit, there are two circumstances... but if the agent turns the collections back to the company, then if they get paid for the audit, the agent doesn't get commission.

I sell guns. If I sell a gun and there is an issue with the gun I sell and we return it, I keep my commission unless I deliver a faulty gun after inspection...then I'm in it with the company. If it is QC I'm safe and product loses their bonuses on exchanges or repairs and such. If the gun doesn't perform... I give back also.

Personally, unless I'm on a guaranteed negotiated Profit Sharing Plan with the company I'd not get involved with this. If EVERYONE gets dinged... meaning whoever touches it gives money back, then that is something else again, but as a salesman, I'm not sticking up for anyone else who is not sticking up for me.

This of course is only me....

Much Aloha... :cool: - by rattus58
Thanks so much, I appreciate your input! - by The Dynamic Business
Weekly Updates!
Questions and Answers about Selling
Subscribe to our mailing list to get threads and posts sent to your email address weekly - Free of Charge.