Glossary
Commission distribution
A schedule for paying out earned commissions to reps.
A commission distribution means paying out portions of commissions over the course of several months or quarters. For example, reps may earn 50% of a commission the month after a sale, with the remaining paid out in 25% increments over the next two months.
Companies typically use commission distributions if it takes them a while for their customers to pay, or instead of commission adjustment “clawbacks.”
Companies typically use commission distributions if it takes them a while for their customers to pay, or instead of commission adjustment “clawbacks.”