The Waiting Game


The Waiting Game

Most vendors pay commissions based on paid revenues of subscribers. Some pay based on billed revenue. All pay monthly, since customers receive their bills once each month.

What does this mean? Let's say that you sign-up a new long distance customer on January 1st. It will take approximately 7-10 days before the local phone company switches them to your vendor. The vendor waits until they have used the service for 30 days before they generate the customer's first bill.

If the vendor pays on billed revenue, you would likely be paid commissions for January usage in March. If the company pays based on paid revenue, you will likely not be paid until April or May.

Since it takes customers time to receive their bills, write a check, drop it in the mail, and for the carrier to receive the check, post it, wait until the check clears, etc., it may be some time before you actually see your first commission check. Waiting 90-120 days from the date that you first sign someone up until you first get paid is not uncommon at all.

This is not a get-rich-quick business! It will take several months before you receive a sizable commission check. The key is to hang in there and keep selling. You will then be able to watch your commissions grow steadily, month after month.

One other note worth mentioning: it may seem a lot better to be paid on billed revenue, since you get paid sooner, but there is a downside. If the customer later fails to pay their bill, you will be assessed a "chargeback" on a future commission check. Essentially, you will be charged back the commission that the vendor previously paid you on the customer's billed revenue. Either way, if the vendor does not get paid, you do not get paid. It's only fair.