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Commission Payments To Sales People


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2019 Oct 21, 8:01am   1,440 views  5 comments

by WookieMan   ➕follow (1)   💰tip   ignore  

Quick question, not sure if anyone here is in sales or runs a business with a sales team. Wife gets salary and commissions for jobs sold. They pay out quarterly. The issue we have is that the company has collected almost, if not all the payments from the customers for July and August jobs. So they're sitting on $2M in cash and we sit and wait for about $100k.

Anyone else heard of this? Hate giving information about myself but I did manage a real estate brokerage for years (no longer though, the industry is toxic). I was the marketing, accounting, behind the scenes type. No sales as real estate is slimy and I have plenty of stories for another day. Side story aside, I'd pay the agents 2 days after we had a check and we had a couple dozen agents closing probably a house or 2 a day on average. It wasn't difficult process and get the money to the brokers.

I'm just dumbfounded why they cannot just shoot a direct deposit over to our account in say 5-7 days giving time for the check to clear from the customer. These are payments from government entities anyway, so the money is good 99.999% of the time. Seems fucked up to me. Let me know if I'm crazy or if you think I'm right. This has been an issue for awhile now.

Look a non-political post. Please don't somehow turn this into politics, she's doesn't work for Trump ;)

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1   rocketjoe79   2019 Oct 21, 8:08am  

Maybe it's a balance sheet thing, or they like making money by holding on to the cash and doing what banksters do. Leverage this, debt that, make money with your money. Slow pay is not just a cash flow strategy - it's a moneymaking strategy.

I used to work for a company that had a 2% invoice rebate for payment within 15 days, net 30, on their Terms and Conditions. They rarely had to do debt collection - people wanted that 2%! Give people an incentive and they will pay you first.
2   WookieMan   2019 Oct 21, 8:34am  

WookieMan says
Maybe it's a balance sheet thing, or they like making money by holding on to the cash and doing what banksters do

This could be it. But it's hard to believe. Sure it's construction in IL, so seasonal. But the laborers get laid off once the work stops, so no hourly there (obviously some unemployment costs). And there's maybe 8 salaried employees full time. Jobs are 50-60% profit margins (product, hourly laborers, fuel, etc.. as expenses) Then you got leases, equipment and marketing that likely don't eat up much more than 10% of total jobs. And they'll do about $8-9M in sales company wide.

Owners are walking with probably $600k a year a piece. Probably more. I've seen the numbers. Cash flow ain't the problem when both owners have $300k boats and one just built a fucking $600k house (expensive for the location - probably a $3-4M house on the coasts. Kids in private school. And no, I'm not jealous. I don't need that shit. Just want the wife to get fucking paid in what should be a reasonable time in my opinion. Decade long frustration.
3   Tenpoundbass   2019 Oct 21, 9:52am  

Will this be her first pay check from them?
If so I can understand the jitters, if not, then it should be as good as money in the bank. She should focus on making $100K every quarter. That's a nice chunk,
$400K a year, that's almost Hunter Biden Money.
4   MisdemeanorRebel   2019 Oct 21, 10:18am  

WookieMan says
I'm just dumbfounded why they cannot just shoot a direct deposit over to our account in say 5-7 days giving time for the check to clear from the customer. These are payments from government entities anyway, so the money is good 99.999% of the time. Seems fucked up to me. Let me know if I'm crazy or if you think I'm right. This has been an issue for awhile now.


Real Estate seems to be a bit regulated; I wouldn't be surprised if there's laws about paying Reps/Brokerage people by certain times in most states' Real Estate laws.

Other commission sales may not be so regulated.
5   WookieMan   2019 Oct 21, 12:16pm  

Tenpoundbass says
Will this be her first pay check from them?

No. She's been with them about 12 years now. It's not a $100k a quarter though either. Seasonal/Construction sales. So 2 great quarters and 1 meh qtr and then a dead qtr here in IL. Just frustrating and has been for awhile.

If you bill a customer on July 15th and receive payment August 15th, why the fuck can't you give your biggest selling employee the god damn money you're holding? She's grown her region from $700k/yr gross sales to probably $7M this year over roughly a decade. She's underpaid too, but I don't want to show my leftie side on this one and make it political (not the wage gap like you'd think).

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