Say your team helps a customer buy fiber for a new office. Two years later, that customer upgrades the circuit and renews with the same provider. Will the commission carry over? Does your team need to register the renewal? Ask while you’re negotiating, when you still have a chance to get the answer into the agreement.
Get specific about what gets paid
Ask for the partner agreement, the applicable commission schedule, and any supplier terms that govern the deal. Walk through these questions with your distributor.
- Which services and charges count toward commission, and what does our team have to do to qualify?
- When is the commission earned, when is it paid, and what can trigger a reversal?
- What happens to the commission on a renewal, an upgrade, or a move? Does the answer change if the carrier handles it directly?
- How do we challenge a missing or incorrect payment? What records do we need, and how long do we have to raise it?
Ask what happens if the relationship changes
Ask what happens to active accounts and signed orders still awaiting installation if either side ends the agreement. If you hear the word “evergreen,” ask which commissions continue and under what conditions. Check for minimum production requirements and whether you’d need consent to transfer the agreement or commission rights if you sell your business.
Make sure the terms fit how you sell
Check who handles deal registration, who can contact the customer, and who owns installation updates and support escalations. If a supplier schedule can change, ask how you’ll be told and how the change would affect orders already in flight.
Ask the distributor to point to the terms that answer each question. If a point matters to the way you sell or get paid, work it into the negotiation and have your attorney review how it’s written before you sign.