Hi everyone 👋 I’m working on a research project regarding Sales Commission Disputes and how they affect Ops teams. I’m trying to understand for those of you running manual spreadsheets OR struggling with your current commission software, what is the biggest "time suck" during month-end close?
Data Integrity: Cleaning messy CRM exports before you can even start math.
The Logic Trap: Managing complex splits, overrides, and tier changes manually.
The "Black Box" Problem: Reps disputing the numbers because they don't trust the tool/sheet.
Payout Execution: The actual back-and-forth with Finance to get the money out.
Any insight (or venting!) would be super helpful for my research. Thanks in advance!
Hi Risly, I'm in charge of Business Intelligence at my org, and have supported commissions for the last 3 years. Here's my take on each area:
Data Integrity - if there are data integrity issues in the commissions process, you likely have data integrity issues in several places you're trying to do reporting. Clean opportunity and/or bookings data, regardless of the comp plans, is vital to even starting to calculate comp.
Logic - This is where things can get tricky, especially if a rep doesn't understand how they're getting paid. Overrides, splits, and changes are going to happen but you need rules around who can authorize them and how they work for commissions purposes. Sales Management should be surprising you with new overrides or tier changes late in the process.
Black Box - the goal is that they understand their plan, and the numbers that make up their commissions so that questions are limited. Obviously things are going to come up. It really shouldn't matter which tool you're using. It should be obvious that based on the business they've closed (or whatever else they're measured on), they're getting paid a certain amount based on that. With all the deals that make that up and their commission calculations. If you have an expensive tool for this and your reps don't understand it, you're probably worse off than doing the calculations in Excel. At least in Excel you can show the detail making up the summary numbers.
Payout - similar to number 3. Finance needs to understand how the commissions/payout calculations work and can verify them completely. Also you need your Finance leaders to have signed off on the plans previously. You don't want them arguing the plans are wrong when your reps believe that's what they'll be getting paid based upon.
