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1099 Sales

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  • 1099 Sales

    I’m a 1099, 100% commissioned sales consultant. Recently I’ve learned that the National Accounts Division for the manufacture I represent has actively pursued high profile accounts that I have taken to the factory for tours by submitting counter bids.

    This was brought to my attention when a customer contacted me, thanking me for my hard work, that I won the bid, and that National had the signed paperwork. I couldn't understand why they would send the paperwork to National, but didn't want to alarm the customer, so I asked for a copy of the signed paperwork. I found that the proposal (layouts/drawings, selection, labor, etc.) was my proposal, but the final quote reflected National Account's numbers. Before I had time to react to this, I received a call from my corporate office, letting me know that I was to maintain the new account locally as well as begin to maintain existing National Accounts in my territory. To top it off, I am also supposed to help National secure additional business through my established relationships. Lastly, I was given the task of "crafting" a "Situation Analysis" and "Comprehensive Plan" for Nevada, and a spreadsheet listing my contacts (to include major layers/developers/projects). All of which I am to present to the manufacturer.

    Of course, at this point, I'm sick to my stomach. I begin asking how/if I will be compensated for my work that helped National secure the first bid, for future bids won through my contact lists and pipeline, and for the time/work that will be involved in maintaining these accounts. What concernes me even more is the fact that I'm commissioned a percentage of the sale's profit. Through National, there is no profit.

    Neither party will give me any clear answers. They have asked me to wait until after the projects install (can take up to 18 months each) before discussing compensation; that I should be more concerned with the projects at hand and my customers. If I were a salaried employee, that wouldn't be a problem, but how do I know how much of my time I should invest into these projects if I don't know what/if I will be compensated. I’m also having a hard time believing that my corporate office is allowing all of this to happen in their territory without having an agreement in place with the manufacturer, but they are insisting that they don’t.

    None of this feels right to me. I've spent the past two years building my relationships and contact/project lists. In the Third Quarter, I had already successfully met my 2006 Sales Goal and have secured a pipeline two times my 2007 Sales Goal.

    I do not want to hand over the requested information before receiving a compensation agreement, in writing, from my corporate office, but not sure how to proceed since they have already been so resistant. Also, they have made it clear that they believe I have no choice in the matter...even though I am 1099, 100% commissioned, and pay 85% of my expenses.

    Does my corporate office have rights to my contact/project lists?
    Do I have to supply the requested information without an agreement?
    Could I walk away from this job and take my pipelines and contact info with me? I'm not suggesting that I would take this information to a competitor (even though I never signed a non-compete), I just have a bad feeling about the direction this is all going and want to be prepared.

    Any recommendations would be most appreciated.

  • #2
    Anything regarding your compensation package, client lists, etc., is going to be controlled by your contract. This is not a wage and hour law issue. I recommend you take your contract/agreement to an attorney versed in employment/contract law and have it reviewed.
    I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.


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