Commission question for capital sales reps

[medequip]

I have been in capital sales for many years and joined a new company this year. My question is about how commissions are paid on orders that were already in house when I started. In my previous job, I was paid commissions once the equipment shipped out -- even if it was an order that was already in house when I started. In my new job they do it a slightly different way. Half the commission is paid once the PO is received. The other half is paid once the invoice is paid by the hospital (once the equipment ships). When I interviewed for this position I was told that I would be paid 1/2 commission on orders that were received by the previous rep -- it can be months and years between receipt of PO and actual ship dates for the equipment. But when it came time to pay the commission on an order that was shipped and installed a few months ago, I was told by the accounts payable person who handles commissions that I don't qualify for the commission because it wasn't an order I brought it. I am trying to work it out with my boss since he is the one who said I would be paid these commissions.

So my question to other cap reps is, how does it work at your company when you started and there were already orders in house but hadn't shipped? Were you paid anything? In my circumstance there are millions in orders that are due to ship that I'm due 1/2 commission on. I'm curious about how other companies handle this.

Thanks!

 

[anonymous]

I've been in companies where I received full commission on orders that the previous rep booked, and I've also received zero commission on previously booked orders. One time because I was on guarantee in the new company. Tried like hell to sandbag one of those orders, but the customer demanded shipment days before I came off guarantee. Then I had the fun of training them over multiple days for zero commission. Good times.

On the other hand, a colleague was working a very large deal before I got hired into my position in a former company. They handed the deal to me, and while I worked my ass off on it for nearly 6 months, he worked right along side me for most of that time. Countless hours. When it closed I got the entire commission. I decided to do the right thing, and I paid him on the side. Probably some douches on this site will say I was a sucker for paying him - but I definitely felt better going to sleep at night.

Last example was a deal where I was hired away into a better job and turned in my notice. I had closed a big deal before I left, but was awaiting shipment and the company only paid on shipment (100% on ship - nothing for order taking). I was absolutely certain I wouldn't get paid, but the new position was worth the switch. To my absolute shock, the company paid me on the whole deal after I was already in my new role. I was concerned they were going to realize their mistake and ask for the money back - so I made the decision to ask HR about it. Nope- the money was mine. Crazy.