Glossary
Recurring commission (capped)
Reps earn multiple (but limited) commission payments each time their customer makes a payment.
Capped recurring commissions typically pay out monthly commissions on each sale until, after a set period of time, commissions cease and the sales rep no longer earns commission from this sale.
Capped commissions typically end after 1yr (or so) of monthly commission payments. Caps are frequently used when one rep is responsible for the initial sale but not managing the customer account post-sale.
Reps may still earn new commissions if making a new sale to the same account. The cap on commissions typically only applies to one individual sale, to limit the amount a rep can earn on this one outcome.
Recurring commissions always end if the customer cancels.
These differ from uncapped recurring commissions, which are paid for an infinite period of time as long as the customer continues to pay.
Capped recurring commissions are typically for subscription-based sales where customers make fixed monthly/yearly payments, but sales reps aren’t involved after initial sale.
Capped commissions typically end after 1yr (or so) of monthly commission payments. Caps are frequently used when one rep is responsible for the initial sale but not managing the customer account post-sale.
Reps may still earn new commissions if making a new sale to the same account. The cap on commissions typically only applies to one individual sale, to limit the amount a rep can earn on this one outcome.
Recurring commissions always end if the customer cancels.
These differ from uncapped recurring commissions, which are paid for an infinite period of time as long as the customer continues to pay.
Capped recurring commissions are typically for subscription-based sales where customers make fixed monthly/yearly payments, but sales reps aren’t involved after initial sale.