Advance to someone on commission?

[RebeccaE]

I have someone who works on a contractual commission only basis (not employee) based in Asia for sales who has asked for the second time recently for an advance. There is no doubt they won’t deliver, but I’m concerned giving advance payments isn’t a habit I want to get into. They are asking due to medical costs, so it’s understandable. I’m not sure what to do? Already gave one advance payment and they’re asking for another. Any advice on how to manage this? I don’t have to advance the commission fee to them but at the same time I don’t want to demotivate them from delivering any other deals.

 

[Frank the Insurance guy]

Hi @RebeccaE

Before you part with any money, have you actually received the formal order and have the cash in the bank?

If you have not, then I would avoid paying any advance commission until you have the cash in your account!

If you have the cash, then its about your relationship with the contractor and what you choose to do.

 

[WaveJumper]

You say in your post they won't deliver, its a big resounding no from me

 

[Bob Morgan]

Gained your cofidence with the first advance - Now it's the Sting! Sounds like The Philippines to me.

 

[AlanJ1]

You say in your post they won't deliver, its a big resounding no from me

They said in the post there is no doubt they won't deliver meaning they will deliver.

 

[Mark T Jones]

There are plenty of red flags here, including 'medical costs', which is often a convenient barrier to probing questions

How long has this person been with you?
What is their prior history?
How consistent is their performance?
Hpw much control do you have over the end-to-end process of a deal?

 

[MBE2017]

If they have repaid the original advance, I would consider it, if they have not, I would not. A lot depends on the amount involved, and how hard it is to get a replacement for them etc. Have they produced ANY sales yet?

I think you are right to be concerned of this becoming a habit.

 

[MOIC]

There is no doubt they won’t deliver

If you're sure about this, then it's worth considering giving the advance, DEPENDING on what figure is involved, hundreds or thousands? The former in low digits is doable.

They are asking due to medical costs, so it’s understandable.

Can this be substantiated?

I don’t have to advance the commission fee to them but at the same time I don’t want to demotivate them from delivering any other deals.

It works both ways, from their point of view, they my be as concerned as you that you may not pay them when they have secured the sale, as they have to involve their time, skills, perhaps without a positive result. It could be classed as a retainer based on the next workload they have to do.

When deciding on this situation (and to be fair on both sides) it may be best to meet halfway, 50% in advance and balance on delivering the sale.

If it's genuinely for medical reasons, which they can prove and they don't have access to other funds, then you may decide to do it, knowing that they may continue to use this reason, which is not the end of the world, as long as the advance is within the 'earned commission' for the next sale.

Ultimately, how good is the contractor to take the risk, if you feel it is a risk?

 

[Newchodge]

They said in the post there is no doubt they won't deliver meaning they will deliver.

No doubt they won't deliver
Take out the negatives
Doubt they will deliver!

 

[tony84]

No doubt they won't deliver
Take out the negatives
Doubt they will deliver!

If you take out the negatives it is actually "they deliver"
No - Negative,
Doubt - Negative,
They - Neutral,
Wont - Negative,
Deliver - Positive? If not, Neutral.

 

[Newchodge]

If you take out the negatives it is actually "they deliver"
No - Negative,
Doubt - Negative,
They - Neutral,
Wont - Negative,
Deliver - Positive? If not, Neutral.

Sorry, take out the double negatives, and doubt, while being a negative dea is not, in grammar terms, a negative.

 

[tony84]

Sorry, take out the double negatives, and doubt, while being a negative dea is not, in grammar terms, a negative.

I used to work in a call centre and we were not allowed to use negative words. I used to say "no problem" and they would class that as 2 negatives and knock points off my score.

I cant bloody win! haha.

 

[BGS]

Hi RebeccaE
Simple, Calculate how much net profit you have made using this contractor, divide that by 10, send them the advance.