Clawback
A provision reclaiming paid commission when a deal churns, fails to pay, or is cancelled within a defined window.
Why it exists
Without it, commission is paid on bookings that never become revenue, which incentivises closing deals regardless of fit. With it set too aggressively, sellers become risk-averse in ways that suppress legitimate business.
Write it before you need it
RELATED TERMS
Dunning
The process of recovering failed payments through retries and customer communication.
On-Target Earnings (OTE)
Total expected compensation when a seller hits quota exactly: base salary plus target variable.
Compensation Plan
The document defining how a seller earns variable pay: what is measured, at what rates, with what accelerators, caps and clawbacks.
Churn
Customers or revenue lost over a period. The leak determining whether acquisition compounds or merely replaces.
Learn how to apply this: RevOps Audit
Definitions are the vocabulary. The courses are where you learn to operate it, with the interactive audit tools.
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