Glossary
Rollover clause
When a sales rep doesn't earn commission that exceeds their monthly draw, they must repay the difference prior to earning commission.
Rollovers are optional clauses applicable only to commission draws or revenue floors. When a sales rep doesn't earn commission that exceeds their monthly draw, they must repay the difference prior to earning commission in future months.
For example, if a rep's commission amount equals $3,500 and their draw is $4,000, then the rep must earn $4,500 in commission the next month (or any other month) to repay the deficit and start earning commission.
Rollovers help guard against established reps taking months off or plateauing. They should only activate once reps are trained and developed enough to always exceed their draw (e.g. once they’ve earned commission in consecutive months or have worked for the company over one year).
Rollover clauses are best for teams on a commission draw where sales reps severely underperforming for months at a time.
For example, if a rep's commission amount equals $3,500 and their draw is $4,000, then the rep must earn $4,500 in commission the next month (or any other month) to repay the deficit and start earning commission.
Rollovers help guard against established reps taking months off or plateauing. They should only activate once reps are trained and developed enough to always exceed their draw (e.g. once they’ve earned commission in consecutive months or have worked for the company over one year).
Rollover clauses are best for teams on a commission draw where sales reps severely underperforming for months at a time.