Impossible Sales Quota, Very Little Pay If Quota Isn't Met

MroyB

New Member
Jurisdiction
Michigan
I know whats being done is unethical, my question is if there is anything illegal, and if there is anything i can do about it or if i should just move on.

I work for a very large franchised company with over 1000 dealers. Each dealer has multiple sales people and we share our amount and quality of sales in a connected salesperson website. I am listed as #7 in the country up against much larger cities. So I know in this situation my level of productivity is not the issue as he claims when I bring this up to him.

With me being a very productive salesperson my employer has not only doubled sales quota within a couple of years, he has separated each kind of equipment with its own quota and if you do not hit each individual quota you are not paid for any of the others that you reached either.

This is our comp plan-

Base Salary - $1800 monthly
Quota 1 - 21k in sales monthly for equipment type 1
Quota 2 - 6k in sales monthly for equipment type 2
Quota 3 - 26 rentals monthly
Quota 4 - 12 Self Gen sales monthly

Each quota is worth $400
Sales after quotas are all met are worth 12%
Quotas are paid on an all or nothing basis

There has been many times where i am 1 rental system short of quota, and even though i met all of the other quotas, being 1 rental short resulted in me not being paid for any of the 4 quotas and only being paid the $1800. I end up just barely missing a single quota almost every single month. These systems I am selling are marked up 3.5 times what we pay for them, so the owner makes a ton of money off of my sales and I am very minimally compensated with $1800. The 26 rentals alone on average are equal to an additional $1040 per month on a 1 year minimum contract for the owner.

We are the only dealer in the country with a comp plan like this, and it is clearly structured in a way that the owner almost never has to pay the salespeople over $1800 per month, while still growing his business. There are salesmen at other dealerships in the country doing half of the sales that I do and are making 6 figures. While I usually land around the 40k mark after 12 hour days, 6 days a week, a closing ratio of 90%, and never taking a vacation day.

I just want to know if there is anything i can legally do about this, is it legal to make a comp plan that can only be achieved in the busiest months of the year? Is this a common style of comp plan or am i being screwed over the way I feel like I am? I have been seriously debating on leaving this company for how underpaid I am, the only reason i'm still with them is the fact that I hate starting over, but it may be time. Any insight or ideas would be greatly appreciated. Thank you!
 
Obviously, yes, you are being screwed. But there is nothing illegal going on. $1800 per month appears to be a hair better than minimum wage. And you've been notified of this payment plan up front.

As a sales person you may also be exempt from overtime.

Your obvious choice is to seek employment elsewhere.

The sooner the better.
 
Can you apply for a job as a salesperson with other franchises or did you sign a noncompete?

Yes I am able to switch franchises from what iv'e been told, there are a couple others within driving distance. I have not tried contacting them yet in fear that they would notify my current employer, i'm not sure how close they all are in communication with each other.
 
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Obviously, yes, you are being screwed. But there is nothing illegal going on. $1800 per month appears to be a hair better than minimum wage. And you've been notified of this payment plan up front.

As a sales person you may also be exempt from overtime.

Your obvious choice is to seek employment elsewhere.

The sooner the better.

This is what I was thinking as well, I receive no extra pay for overtime, which on average is 20-30 hours extra per week. I guess will start looking into competitors and other franchise owners available sales positions. Thank you.
 
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