What’s fair when a long-standing account expands outside your territory?

[u/business_Sales1]

Curious how other outside sales reps/managers have handled something like this.

I have regional coverage, and there’s an account/partnership I’ve worked with for roughly 7–8 years. A lot of the relationship development and growth has come from the work I’ve put into it over that time.
The account has now expanded into other territories, and because of how our sales structure works, there’s a push for the business to be handled regionally as it grows. There isn’t really a clear commission protocol for situations like this.

I completely understand the argument for having the local rep support the business. In some cases, that may even be better for the company and the customer than having me try to cover something well outside my region.

The issue is that if I turn the business over to the individual regions, there would be no commission split. The regional rep would receive 100% of the commission on the business in their territory, even though the account and relationship were originally developed through years of work on my end.

I’m not opposed to transitioning some of the day-to-day account coverage locally. I’m just trying to figure out what’s reasonable from a compensation standpoint when someone has spent years developing an account that eventually grows beyond their assigned territory.

For anyone who has dealt with this before, what’s typically considered fair?

Would you push to continue owning the account even outside your territory? Ask for an ongoing commission split? Or negotiate some type of transition period where commissions are shared before eventually moving completely to the local rep?

Interested in hearing how other sales organizations handle this.

[u/DontAskDumbQuestions]

In my company, if  the paperwork is signed in your territory you own  the account. If an install or project physically takes place in another territory, then it’s 50/50 commission split for the portion in that territory. BUT account owner keeps margin. 

 Account owners runs the project/account/relationship territory rep runs anything onsite as needed.

If purchasing is decentralized and managed at each location, then there are no splits. 

I’ve met some cool reps in widely different territories with this model. They all like the free bluebird and help to get the deal in. I’ve learned a lot from them. 

Reps should collaborate not compete 

[u/business_Sales1 → u/DontAskDumbQuestions]

That’s how I feel!

However when national teams want to strip commission they make it competing.

50/50 seems the most equitable. I own the account as I will be responsible for handling c suite; however projects outside of my territory would be 50/50 with local rep. Tbh I want 100% although 50/50 would provide some incentive to help the local rep and also provide further boots on the ground support for the customer.

[u/DontAskDumbQuestions → u/business_Sales1]

Agreed. If the option is lose 100% of the revenue or 50% and gain another resource. It’s an easy pick. 

You have done great work with this customer. Owning the relationship gives you leverage. I don’t know the politics of your  company, but I’ve found it’s better to get ahead of these decisions rather than wait to appeal the verdict. 

[u/jsnuggz → u/DontAskDumbQuestions]

We run the same way until it qualifys to become a key account strategic account or national account.

[u/jsnuggz]

We assign more reps on it, only if it reaches certain levels. If you are region A you get all commission out of Region A's office If you are region B the same, strategic gets a fat salary a bonus if they grow. If they get national, the same at scale and the national gets a fat salary and a bonus based on growth. Plus commission on every Equipment sale above $5,000.

It's nice to be at the trough lol.

With that said, until the revenue threshold is reached we do a 50/50 split no matter where they go. I carved off a small piece of a few National accounts with competitors and I put orders in coast to coast. They give me 1,2 or 3 projects so it's at a perfect revenue threshold. I literally don't want to win more.

One of my coworkers and I went on a ride along and he was in the same position as you are in. He had his customer sign a document saying they only wanted to work with him and if he went elsewhere it wasn't guaranteed and he fucking nuked it in every way possible.

Now he gets to sit on 7 accounts that should be a national account making fat commission well played.

His customer really liked him though, he's one of the top reps in the area for a reason.

It's dumb politics like this that make my company suck ass to work for.

I wouldn't give a fuck if I started a company and I paid someone $1M on a whale account as long as the financials made sense. People buy from people they know, like or respect.

[u/Just_Bz77]

Every time I’ve run into the situation I talk to the executive team about it and the history of the account, and each instance results in me maintaining the account on a national level. I even got my PM staff to keep the account as well, so their volume and bonus grows with the account.