sales compensation plan Archives - Everyday Software, Everyday Joyhttps://business-service.2software.net/tag/sales-compensation-plan/Software That Makes Life FunMon, 23 Feb 2026 09:02:11 +0000en-UShourly1https://wordpress.org/?v=6.8.3The Most Common SaaS Sales Potholes and How to Avoid Them with Mark Roberge (Podcast #498 and Video)https://business-service.2software.net/the-most-common-saas-sales-potholes-and-how-to-avoid-them-with-mark-roberge-podcast-498-and-video/https://business-service.2software.net/the-most-common-saas-sales-potholes-and-how-to-avoid-them-with-mark-roberge-podcast-498-and-video/#respondMon, 23 Feb 2026 09:02:11 +0000https://business-service.2software.net/?p=7896SaaS revenue can look predictableuntil hidden sales potholes wreck retention, pricing power, and team performance. Based on Mark Roberge’s Podcast #498 and video, this deep-dive breaks down six common pitfalls: outdated commission plans that undermine adoption, price increases without defensibility, confusing temporary differentiation for a true moat, promoting top reps into management too fast, scaling acquisition ahead of customer value, and hiring a sales army right after fundraising. You’ll get practical fixes, examples, and a checklist to align incentives with expansion revenue, validate moats, define leading indicators of retention, and scale headcount with control. Plus: of composite “field notes” that show what these mistakes look like in real SaaS teamsand how the best ones recover fast.

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SaaS growth is supposed to be “predictable,” right? You land customers, you expand accounts, the chart goes up and to the right, and everyone high-fives
in a tasteful Slack emoji. And then… your churn ticks up, your sales cycle bloats, your best rep becomes your worst manager, and your shiny new pricing
plan turns into a customer-hostile escape room.

In Podcast #498 (and the companion video), Mark Robergeformer HubSpot CRO, Stage 2 Capital co-founder, and a person
who has seen more revenue dashboards than most of us have seen sunsetsbreaks down the most common “potholes” that quietly flatten SaaS companies on
the road from $0 to $100M. The good news: these mistakes are common. The better news: they’re fixable. The best news: fixing them
makes your growth feel less like a roller coaster designed by raccoons.

Why Mark Roberge’s Potholes Hit So Hard

Roberge’s whole brand is “bring science to sales.” Not in a lab-coat waymore like: define the inputs, measure the outputs, build a repeatable
system
. The potholes he calls out share a theme: they’re not usually caused by bad people or lazy teams. They’re caused by
misaligned incentives, wishful thinking, and scaling too fast before the foundations are real.

Think of these potholes as the SaaS version of eating healthy: everyone agrees it’s important, but somehow the “quick win” donut keeps showing up in
meetings. Let’s take them one by oneand translate each into practical moves you can apply this quarter.

Pothole #1: Legacy Commission Plans That Quietly Kill License Utilization

The classic comp plan heavily rewards new logos. That can work early on, but it also teaches reps to optimize for the “first yes,” not
long-term customer success. In SaaS, that’s risky because the real profit often shows up in renewals, expansion revenue, and net revenue
retention
.

What it looks like in the wild

  • Customers buy a big package, but only a slice of seats/features get used.
  • Your team celebrates bookings while Customer Success quietly updates their resumes.
  • Renewals come with downgrades (“contraction”) because adoption never took off.

How to avoid it

  • Pay for outcomes that create durable revenue. Consider higher commission rates (or accelerators) for expansion and healthy renewals,
    not just net-new deals.
  • Introduce utilization-aware triggers. If your product is seat-based, measure activation and adoption milestones per account and align
    handoffs so Sales doesn’t “throw it over the fence.”
  • Use a retention lens when you review comp. If comp is driving discounting, bad-fit customers, or churny cohorts, it’s not “just a comp
    issue”it’s a growth issue.

Bottom line: if your comp plan only rewards the first transaction, don’t be shocked when customers treat you like a one-time purchase.

Pothole #2: Raising Prices Without a Sustainable Moat

Price increases can be smart. They can also be a shortcut that backfiresespecially if your differentiation is thin and switching costs are low.
Roberge’s warning is simple: if you raise prices without real defensibility, you often get the worst combo:
longer sales cycles, lower close rates, and higher disruption risk.

Common failure pattern

The pitch becomes harder (“why are you worth it?”). Procurement gets louder. Champions get shakier. Meanwhile, a competitor offers “similar enough” for
less, and suddenly you’re in a bake-off you didn’t budget for.

How to avoid it

  • Protect the “entry point.” Many strong SaaS businesses keep a reasonable starting price and expand account value through adoption,
    additional modules, usage, or seat growth.
  • Anchor price to measurable value. If customers can’t connect the price to outcomes (time saved, revenue earned, risk reduced), the
    price feels arbitraryand arbitrary feels negotiable.
  • Stress-test pricing with sales reality. Before rolling out, model how changes affect win rate, cycle length, discounting, and churn.
    Pricing is not a spreadsheet exercise; it’s a go-to-market event.

Pothole #3: Confusing a Temporary Moat With a Sustainable Moat

This is the one that stings because it’s basically a personality test for founders. Your product feels special. Your team is brilliant. Your customers
like you. Great! Now ask the uncomfortable question: will you still win when the market gets mean?

The “Sustainable Moat Test” (a.k.a. the “Sequoia Clone” nightmare)

Imagine a handful of elite engineers raise a big round, copy your product, and sell it for half your price. Why would buyers still choose you?
If your answer is “because our UI is nicer,” please sit down and hydrate.

What sustainable moats can actually look like

  • Network effects: the product becomes more valuable as more people use it (marketplaces, collaboration layers, ecosystems).
  • Brand/category leadership: you own the narrative and the trust, not just a feature list.
  • Economies of scale: cost or data advantages that compound as you grow.
  • Distribution advantages: channels or product-led loops that competitors can’t easily replicate.

How to avoid the trap

  • Write your moat in one sentence. If it takes a paragraph, it’s probably vibes.
  • Invest where your advantage compounds. If your edge doesn’t strengthen with growth, it’s not a moatit’s a head start.
  • Build switching costs ethically. Make customers stay because they win with you, not because leaving is a nightmare.

Pothole #4: Promoting Your Best Salesperson to Manager

The logic seems flawless: “They’re the best at selling, so they’ll teach everyone else.” Except sales management is a different job.
Selling is performance; management is systems, coaching, hiring, accountability, and consistency. One is a solo sport. The other is
building a team that can win without you playing every point.

What it looks like when it goes wrong

  • Your former top rep misses the thrill of closing and starts “saving” deals (and stealing learning moments).
  • Coaching becomes storytelling (“here’s what I do”) instead of skill-building (“here’s how you do it”).
  • You lose a top performer and fail to gain a strong manager. A two-for-one special, but in the bad way.

How to avoid it

  • Use a promotion path, not a promotion event. Try a trial period: mentorship responsibilities, hiring participation, and coaching
    practice with feedback.
  • Teach management fundamentals. Forecasting discipline, deal review structure, 1:1 coaching cadences, and performance management are
    learned skills.
  • Offer an IC “elite” track. Keep your best sellers sellingwith status, compensation, and growthso management isn’t the only form of
    recognition.

Pothole #5: Prioritizing Revenue Acquisition Over Customer Value Creation

This pothole is sneaky because it disguises itself as ambition. “We need to scale pipeline.” “We need to hire more AEs.” “We need to push harder.”
Meanwhile, your retention and expansion tell a quieter truth: you’re acquiring revenue faster than you can create customer value.

The smarter scaling signal

Roberge’s point is that retention is a strong indicator of product-market fit, but it’s lagging. So you need a
leading indicatora measurable product usage milestone that correlates with long-term retention.

How to avoid it

  • Define your leading indicator of retention. Put it in a simple format: “X% of customers achieve Y behavior within Z time.”
  • Align Sales, Product, and CS around that indicator. If Sales closes customers who will never hit the activation milestone, you’ll
    “grow” yourself into a churn problem.
  • Scale after you have GTM fit, not just pipeline hope. Product-market fit plus a repeatable acquisition motion is when scale stops
    being gambling.

A quick “value-creation” gut check

QuestionIf “No,” you may be scaling too early
Do cohorts retain in a predictable way?You might be buying churn with marketing spend.
Do customers reliably activate by week/month milestones?Sales is likely closing poor-fit accounts (even if win rate looks fine).
Do expansions happen without heroic effort?Your product may not be delivering compounding value.

Pothole #6: Massive Sales Hiring Right After a Financing Round

Fresh funding makes teams feel invincible. The temptation is to “step on the gas” by hiring a wave of reps immediately. But headcount doesn’t create a
repeatable motion; it amplifies whatever motion you already havegood or bad.

Why this backfires

  • Ramp time is real. New reps take months to learn your product, market, and process.
  • Managers become firefighters. Coaching turns into chaos triage, not skill-building.
  • Forecast accuracy collapses. Too many variables shift at once: territories, messaging, ICP, and onboarding quality.

How to avoid it

  • Set a deliberate hiring pace. Consider controlled growth (for example, adding a small number of reps per month) so you can measure
    productivity, onboarding effectiveness, and pipeline quality.
  • Instrument ramp and capacity. Track time-to-first-meeting, time-to-first-opportunity, time-to-first-closed-won, and quota progression.
  • Invest in enablement before headcount. Playbooks, call coaching, onboarding structure, and consistent deal review are multipliers.

Funding should buy you speed with control, not speed with whiplash.

A Pothole-Proof Playbook: The “Do This Next” Checklist

  1. Rebuild comp around retention and expansion, not just new logos.
  2. Keep pricing tied to value, and don’t hike without defensibility.
  3. Run the sustainable moat testand invest where your advantage compounds.
  4. Stop auto-promoting top reps; build a manager bench with training and trials.
  5. Define a leading indicator for retention and align the company around it.
  6. Scale hiring at a measured pace; build enablement as your growth multiplier.

If you do nothing else this month, do this: pick one pothole you suspect you’re hitting, define how you’ll measure it, and run a
30-day fix experiment. SaaS doesn’t reward perfect plans. It rewards tight feedback loops.

Field Notes: 5 Experience-Based Scenarios (Composite, But Painfully Familiar)

You asked for real “experience” around these potholes, so here are five composite scenariosblended from the patterns teams commonly
share in founder communities, revenue leadership circles, and scaling playbooks. No names, no shaming, just the kind of stories where you nod… and then
quietly check your own dashboard.

1) The “Champagne Booking, Tap-Water Adoption” Quarter

A Series A SaaS company crushes new ARR. Reps are paid almost entirely on new deals, so they push bigger seat counts to maximize contract value.
The problem shows up 90 days later: utilization is low, admins aren’t rolling out the tool, and renewal conversations start with “we didn’t really use
it.” The fix isn’t more customer success heroicsit’s comp alignment. Once expansion and healthy renewals paid better than oversized first contracts,
the deals got smaller up front but stickier over time. The funny part? The CFO initially hated it because “bookings dipped,” and then loved it because
net revenue retention stopped acting like a haunted house.

2) The Price Increase That Turned Sales Calls Into Debate Club

Another team raises prices 30% because “we’re underpriced.” They are… compared to their dream competitor. The market responds by extending sales cycles,
demanding security reviews earlier, and negotiating harder. Reps spend half their week in discount approvals. The eventual lesson: when your moat is thin,
pricing power is borrowed money. They relaunch with a clearer entry tier, sharper packaging, and a value narrative tied to a measurable outcome. Close
rates recover, and the company makes more moneynot by charging everyone more, but by expanding the customers who actually win with the product.

3) The “We Have a Moat” Feature That Shipped Everywhere by Tuesday

A founder declares their differentiation is “AI-driven insights.” Within months, competitors ship similar features (because of course they do).
Suddenly, the sales team is stuck arguing about checkboxes. The company pivots to build a real advantage: proprietary workflows, deep integrations, and a
community-led distribution loop that brings in qualified inbound. The product didn’t just get “better.” It got harder to replace. That’s the goal:
not “cool,” but “sticky.”

4) The Best Rep Who Became a Manager and Immediately Became Miserable

A top AE gets promoted and tries to “coach” by doing everyone’s deals for them. The team becomes dependent. The manager burns out. The pipeline looks
fine, but rep skill doesn’t improve. Eventually leadership creates two tracks: a true management path with training and metrics (coaching quality,
hiring success, team attainment), and an elite IC path with recognition and compensation. The top AE returns to selling, happier and (ironically)
more valuable. The moral: management should be a calling, not a consolation prize with extra meetings.

5) The Post-Funding Hiring Spree That Created a Forecast Horror Movie

After a big round, a team hires 12 reps in one quarter. Onboarding is inconsistent, messaging drifts, and managers spend their days answering the same
questions on repeat. Ramp takes longer, churn creeps up, and the forecast swings wildly. They reset with a controlled hiring pace, a structured 30-60-90
plan, weekly call reviews, and clearer qualification rules tied to activation success. Revenue doesn’t just reboundit becomes predictable. And when your
revenue is predictable, you stop making “panic decisions,” which is the most underrated growth strategy of all.

Conclusion: Fill the Potholes Before You Floor It

The biggest takeaway from Mark Roberge’s SaaS potholes isn’t that sales is fragileit’s that sales is engineerable.
You can design incentives that produce healthy growth. You can define leading indicators that prevent churn before it happens. You can build a moat
that turns pricing into leverage instead of risk. And you can scale hiring without turning your forecast into interpretive dance.

Your job isn’t to avoid every bump. It’s to stop pretending the bumps are “just normal” and start treating them like what they are:
system design problemsand therefore, solvable.

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Yes, You Do Have To Pay Sales Commissions When a Partner Mostly Closes The Dealhttps://business-service.2software.net/yes-you-do-have-to-pay-sales-commissions-when-a-partner-mostly-closes-the-deal/https://business-service.2software.net/yes-you-do-have-to-pay-sales-commissions-when-a-partner-mostly-closes-the-deal/#respondFri, 30 Jan 2026 08:56:06 +0000https://business-service.2software.net/?p=554When a channel partner does most of the late-stage closing, it can feel tempting to treat your internal rep’s commission as optional. In many U.S. sales organizations, it isn’t. Whether commissions are owed depends on your written commission plan, the deal-credit rules you’ve set, and when a commission is considered “earned.” This guide breaks down why “partner closed it” doesn’t automatically erase commission obligations, how concepts like procuring cause can influence disputes, and what common channel scenarios look like in practice. You’ll also get plan-writing tipsearning events, partner-aware credit splits, documentation standards, and dispute timelinesplus real-to-life experiences teams commonly face so you can prevent conflict before it hits payroll. Clear rules, fair credit, and solid records keep partners engaged, reps motivated, and finance out of the drama business.

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Let’s talk about the awkward moment every revenue team eventually has: the deal closes, the champagne pops, and then someone asks,
“Wait… who gets paid?” If you’re thinking, “Well, the partner did most of the closing, so our rep gets… a heartfelt thank-you email?”
Congratulationsyou’ve just invented a commission dispute.

In many real-world setups (especially channel and co-sell motions), a partner can run point on the late-stage sales work and you can
still owe commissions internally. Why? Because commissions aren’t about who talked the most on the final call. They’re about
what your compensation plan says, what your agreements require, and when the commission is considered “earned.”

Note: This is practical business guidance, not legal advice. Commission rules vary by state and by contract, so treat this as a roadmapand call your HR/legal pros when money and feelings are both on the line.

Why “Partner Closed It” Doesn’t Automatically Cancel Your Commission Obligation

In the U.S., sales commissions are usually governed by a mix of:

  • Your written commission plan (or offer letter / comp agreement)
  • Company policies (crediting rules, deal desk approvals, CRM requirements)
  • State wage-payment rules that can treat earned commissions like wages
  • Common-law principles (like “procuring cause” in certain commission disputes)
  • Partner contracts (referral fees, resale margins, deal registration, influence incentives)

Here’s the key idea: you can owe a commission even if your rep didn’t “close” in the dramatic, movie-trailer sensebecause the rep may
have created the opportunity, met defined milestones, or satisfied the plan’s requirements for commission eligibility.

The Two Questions That Decide Most Commission Fights

1) When is the commission “earned”?

The biggest lever in any commission plan is the “earning event.” Common earning events include:

  • Booking: contract signed and entered as booked revenue
  • Revenue recognition: recognized revenue milestones (less common for commissions)
  • Cash collected: customer pays (common in some industries, risky for morale)
  • Delivery/activation: implementation live, shipment delivered, service started

If your plan says commissions are earned at bookingand the rep’s actions qualified the deal for booking creditthen “partner did the closing”
doesn’t magically rewrite the plan.

2) Who is entitled to credit under the plan?

Mature sales orgs separate sales credit from partner compensation. You might pay a partner a referral fee
or margin while still paying your internal rep for sourced pipeline, account ownership, or team-sell contribution.

Think of it like a band: the drummer might not sing the chorus, but you still pay them for the gig. (Also: don’t anger drummers.)

The “Procuring Cause” Idea: Why Early Work Can Still Earn the Commission

A common commission argumentespecially in disputes involving reps, agents, or post-termination paymentsis that the salesperson who was the
“procuring cause” of the sale should be paid. In plain English: if someone’s efforts were the main reason the deal happened, a court may not
love it when a company tries to dodge payment just because someone else handled the final paperwork.

You don’t need to be a lawyer to apply the practical lesson: if your rep sourced the opportunity, built the relationship, guided discovery,
coordinated internal resources, and positioned the solution, a partner “closing” late stage is often just a different set of hands finishing
the relaynot a reason to pretend the race never happened.

Common Channel Scenarios (And Who Usually Gets Paid)

Scenario A: Rep sources the lead; partner closes the deal

This is the classic co-sell: your AE finds the account, the partner has the trusted advisory relationship, and the partner runs procurement.
If your comp plan rewards sourced pipeline or new logo credit, your rep often still earns some or all of the
commissionunless the plan clearly excludes partner-led deals.

Best practice: define a split (example: 50% sourcing / 50% closing) or define a primary-credit rule (example: “Account owner earns unless deal is registered to partner before stage 2”).

Scenario B: Partner sources the lead; internal team supports and prices

Many companies use deal registration to protect partner-sourced opportunities. In this case, your plan may pay:

  • Partner: referral fee, margin, or incentive
  • Internal rep: a smaller “assist” commission or overlay credit (because support still matters)

If you pay nothing internally, your reps may “accidentally” stop answering partner emails. Not out of spite, of courseout of sudden,
mysterious calendar congestion.

Scenario C: Partner resells; you never see the customer until the PO arrives

For reseller/distributor motions, internal commissions depend on your plan’s definition of ownership and eligibility. If the rep is assigned
to the territory/account and the plan pays on shipments/bookings in that patch, you can still owe commissions even if the partner did the
sellingbecause the plan is compensating coverage and growth, not who pitched the deck.

Scenario D: Two internal reps + one partner all touched the deal

Welcome to the commission version of a group project. The solution is rules, not vibes:

  • Define roles: owner, overlay, SDR, partner manager, solution engineer (if comped)
  • Define credit weights: new logo vs expansion vs renewal
  • Define dispute process and time limits

In many states, once a commission is earned under the terms of the agreement, it can be treated like wagesmeaning late payment, improper
withholding, or fuzzy “we changed the rules after the quarter ended” behavior can create real risk.

Some states also push employers toward written commission agreements. Even when not strictly required, written clarity is your
best defense against “That’s not what you told me in March” argumentsespecially after someone leaves the company.

How to Write a Commission Plan That Survives Partner-Led Closing

1) Define “earned” in one sentence (not a 9-slide interpretive dance)

Example language (plain-English style): “Commissions are earned when the customer signs the agreement and the company books the order in the CRM,
provided the deal meets eligibility rules and has required approvals.”

2) Build crediting rules for partner involvement

Decide which world you live in:

  • World 1: Partner protected. Partner registration locks primary credit unless revoked for cause.
  • World 2: Account protected. Account owner keeps credit; partner gets incentives separately.
  • World 3: Shared credit. Sourcing and closing split, with partner-led closing triggering internal “assist” credit.

3) Spell out disqualifiers (and keep them reasonable)

If you want conditionsdiscount caps, margin thresholds, past-due customer paymentslist them clearly. Avoid vague clauses like
“Management may adjust commissions at any time for any reason,” unless you enjoy reading angry emails written in ALL CAPS.

4) Require documentation that matches the real sales motion

  • Deal registration ID (if partner-sourced)
  • CRM ownership and stage history
  • Opportunity source fields (SDR, rep, partner, inbound)
  • Approval records (deal desk, legal, finance)

Documentation doesn’t prevent every argument, but it turns “I swear I did the work” into “Here’s the timeline.”

5) Add a dispute process with a deadline

Example: “Disputes must be submitted within 30 days of the commission statement. Finance will respond within 15 business days.”
Without this, disputes can appear months later like a surprise sequel nobody asked for.

Specific Examples: What Paying Commissions Can Look Like

Example 1: SaaS co-sell split

AEs earn 10% of first-year ARR for new logos. The partner runs the enterprise security review and procurement.

  • AE (sourced + ran discovery): 6% of ARR
  • Partner manager (activated partner + managed relationship): 2% of ARR
  • Overlay specialist (technical win): 2% of ARR
  • Partner: separate referral incentive paid under the partner program

Result: everyone stays motivated, and nobody has to “accidentally” forget to update the CRM.

Example 2: Manufacturer with territory rep + distributor close

A territory rep develops an account over six months. The customer finally buys through an authorized distributor.
If the comp plan pays the territory rep on shipments into that account/region, the rep still earns the commissioneven though the distributor
processed the order.

Example 3: Referral-only rule (when it’s truly referral)

If your internal role is purely referral-based (e.g., “introduce, then hand off”), your plan can legitimately pay a smaller, fixed bounty:
$1,000 at qualified meeting + $4,000 at booking. In that structure, it’s fair that a partner “closes” while your employee earns the referral payout.

What Sales Reps Should Do When a Partner “Mostly Closes”

  • Read the plan like it’s a contract (because it often functions like one in disputes).
  • Document your contribution: meeting notes, discovery artifacts, emails, CRM updates.
  • Align early: ask your manager, “Is this partner-led, shared credit, or mine?” before the deal hits legal/procurement.
  • Follow the dispute process: stick to deadlines and submit specifics, not feelings.

What Companies Should Do to Avoid “Commission Court”

  • Use clear written agreements and get signed acknowledgments.
  • Define partner rules (deal registration, partner-sourced vs partner-assisted).
  • Train managers to explain crediting before quarter-end panic hits.
  • Audit commission calculations and keep records.
  • Pay on time and communicate adjustments transparently.

Conclusion: If You Promised Commissions, “Partner Closed It” Isn’t a Get-Out-of-Payment Card

In partner ecosystems, closing is often a team sport. And in the U.S., commission obligations don’t vanish just because a partner carried
the ball across the goal line. If your plan or agreement says the rep earned itand the rep’s work was a real driver of the salethen yes,
you usually still have to pay sales commissions even when a partner mostly closes the deal.

The fix isn’t to argue louder. The fix is to write clearer rules, define earning events, document crediting, and pay people in a way that
matches how revenue actually gets made.


Experiences Sales Teams Commonly Run Into (And What They Teach You)

Below are real-to-life patterns many sales orgs report when partners do most of the late-stage closing. Names and details are generalized,
but the lessons are painfully specific.

1) The “Invisible Sourcing” Problem

A rep spends weeks getting the right stakeholders into discovery, mapping pains, and building internal champions. Then the partnerwho already
has a long-standing relationshipsteps in at procurement time and becomes the “face” of the deal. The contract gets signed, and suddenly the
story becomes: “The partner closed it.” The rep feels erased, and the next time a lead smells like partner involvement, they stop investing
early effort. Lesson: pay for sourcing (or at least formally credit it), or your pipeline will quietly starve.

2) The Deal Registration Turf War

A partner registers a deal after hearing a rumor the customer is shopping. Meanwhile, your rep already has meetings booked and notes in the CRM.
Now both sides claim the opportunity: the partner says “we brought it,” the rep says “we built it.” Without timestamps, definitions, and a
conflict-resolution process, your channel program turns into a weekly episode of “Who Touched It First?” Lesson: deal registration
needs clear acceptance criteria, time limits, and a documented tie-breaker (like earliest verified qualification).

3) The “Discount = Clawback” Surprise

Partner-led closing often means bigger discounts (partners want the win, and procurement loves a bargain). Then finance applies a margin rule:
“Below X% margin, commissions are reduced.” If that rule wasn’t obvious up front, reps interpret it as punishment for working partner deals.
Partners interpret it as the vendor not supporting the channel. Lesson: if you have margin thresholds, publish them and model
scenarios in trainingdon’t let people discover them the way you discover a nail in your tire.

4) The Renewal Nobody Owned

A partner manages the relationship post-sale. Your internal account team assumes the partner will handle renewal. The partner assumes the vendor
will handle renewal because it’s “your contract.” Time passes, the customer drifts, and the renewal becomes a scramble. When it finally closes,
everyone shows up for commission credit like seagulls at a French fry festival. Lesson: define ownership for renewals and expansion:
who drives, who supports, and what gets paid (and when).

5) The Exit Interview “By the Way, You Still Owe Me” Moment

A rep leaves the company. Two months later, a partner finalizes a deal that the rep had nurtured. The company says, “They’re gone, so no commission.”
The former rep says, “I did the work, and the plan never said I forfeit it.” This is where disputes get expensive fastbecause once people are no
longer trying to be polite coworkers, they become highly motivated historians with excellent email-search skills. Lesson: commission
plans must clearly address post-termination commissions and define the earning event in a way that’s consistent with state rules and fair practice.

These experiences all point to the same fix: make your comp plan match reality. If partners are integral to closing, build partner-aware crediting.
If reps create value early, pay for that value. If your rules are clear, your channel thrives; if they’re fuzzy, your finance team becomes an
unpaid referee.


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