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Commissions for sales rep?

DamienD

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May 3, 2018
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Hello everyone, I have developed a product and hit the road quickly to start making sales. Currently, I have one deal which seems to be going well so far... it's been approximately 2 1/2 weeks of periodic discussions where I've been handling questions, concerns, wants and objections. There's been quite a lot of revising concerning price and value of the product but it seems to me it is at its peak point where a decision is on the horizon. But there's a roadblock that popped up... the employed sales rep the business that I'm trying to sell my products to in bulk wants a commission. I don't know how to handle this. I don't want to hide anything from the owner of this business whom I've been working with directly and destroy a good business relationship. But this sales guy seems to want to hide this information from his boss. Now, the sales guy was the one that introduced me to his boss so I don't have an objection about giving him some thank you notes. But hiding it?? I'm not comfortable with that. How do you guys handle a situation like this? Is it common for this to take place? Is it kosher to keep the commission out in the open without causing disruptions in the deal? Please help. Thank you.
 

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minivanman

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I don't want you to think we are ignoring you but personally, this is such a sticky situation, I would have to be IN the situation before I could make a decision on what to do. Lots of things to consider that we do not know. Tough call right here.
 

Dunkafelics

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So he introduced you to the CEO/boss of the company that he works for?

Does he receive payment/commission from the company that he works for?

If so, he can be paid by the company that he works for.

You can always state in your business meetings with the CEO that this specific sales representative is the reason why this meeting has been set up for the two sides, but you don't owe this guy/girl anything.

Stick with your gut feeling.
 

minivanman

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Yeah, but the big question is.... can the sales guy screw this up because you won't play his game? And then if he can, the product and how/where you can sell it in the future are all the questions we don't know. Lots more to it than just saying screw this guy. I mean, sure, screw him but you have to look at the big picture. And then let's say you give this guy money... what if his boss finds out later? Bad situation to be in.
 
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DamienD

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May 3, 2018
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Yes, it's not good. I've decided already to bring the situation to light in the upcoming meeting. It's all just unnecessary. The story will unfold in the way it decides to unfold after I bring the situation to the surface.

It's the only deal I'm working on but it is one that I would like to see myself earning.

Wish me luck :)
 

Late Bloomer

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Good luck, but I think this is a strategic mistake in your situation. I think it would be better for you (as it would for me) to meet ten prospects and have ten follow ups every week, rather than checking back week after week to see if The One Deal has closed yet.
 

Late Bloomer

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I'm a little confused on the time line and relationships. Does the sales rep have a contract or letter of agreement with you? Did you have a conversation where you agreed that he will represent your product, and get a finder's fee or commission? Is he an employee of the company that you're trying to sell to?
 
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DamienD

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May 3, 2018
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Just an employee. I think it may be that he sees the potential and wants a piece of the pie privately. There's no obligations involved but some compensation was requested. It was not clear on the amount or how it would be received. Seemed to be an impulsive request if that helps.
 

Walter Hay

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Just an employee. I think it may be that he sees the potential and wants a piece of the pie privately. There's no obligations involved but some compensation was requested. It was not clear on the amount or how it would be received. Seemed to be an impulsive request if that helps.
If he wants a payment without his employer knowing, that is known as a secret commission and such will be illegal and as a criminal offense could get you into serious trouble.

Get legal advice before you do this.

Walter
 

GravyBoat

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So he introduced you to the CEO/boss of the company that he works for?

Does he receive payment/commission from the company that he works for?

If so, he can be paid by the company that he works for.

You can always state in your business meetings with the CEO that this specific sales representative is the reason why this meeting has been set up for the two sides, but you don't owe this guy/girl anything.

Stick with your gut feeling.
What Dunkafelics said. You should go to his superiors. You don't owe the sales rep a dime, he is willingly employed for whatever he gets paid from his company to do his job. If he wanted a commission he would have gotten a different job.

Godda play this carefully tho as others have said. I would cut the sales guy out of the loop ASAP. Go straight to his superior.

Let us know what ends up happening. Super sticky sitch!
 

GravyBoat

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@DamienD what ever ended up happening with this? Super interesting situation.
 

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