How a $1M deal turns into a small paycheck
You close a $1M deal. Then the credit rules run.
Here's one way it goes. A specialist worked the deal with you, so your share of the credit is 50%: $500K. It went through a channel your plan credits at half, so you're at $250K. At an 8% rate, that's $20K of commission, and after setting aside 30% for taxes, about $14K. The customer paid $1M.
Every plan's rules are different, and this is just an example. The point is that the contract value and your credit are often two very different numbers.
Why it happens
Splits exist for real reasons. Specialists, partners and account managers help close deals, and plans pay them for it. The trouble is finding out how your split works after the deal closes.
What to do
Get the crediting rules in writing before a big deal closes, with one example worked through. When several people are on a deal, agree on the split early, in writing, before anybody knows how big it'll get. Commission Check shows what your share pays.
