The "Cold War" Reality:
In many organizations, Sales and Finance are natural enemies. Sales wants speed and flexibility; Finance wants control and accuracy. When they clash, the business slows down. Here is how to turn that tension into a strategic advantage.
For a Revenue Operations leader or Controller, the relationship between sales and finance often feels like a negotiation rather than a partnership.
- Sales feels that Finance is a "Department of No" that tries to minimize their earnings with complex rules.
- Finance feels that Sales is trying to "game the system" and treats the commission plan like a suggestion.
This tension isn't just annoying—it's expensive. It leads to disputes, delayed closes, and a "Shadow Ledger" where reps waste time double-checking your math.
The goal isn't just to "get along." It's to build a system where financial control and sales motivation pull in the same direction.
Here is your 5-step playbook to bridge the gap.
Step 1: Establish a "Commission Governance" Committee
The biggest mistake companies make is treating commissions as solely a Finance task or solely a Sales Ops task. It must be shared.
You need a formal Governance Committee that meets monthly (not just annually). This group—typically a VP of Sales, VP of Finance, and RevOps leader—has three jobs:
- Review Dispute Patterns: Are we fighting about the same rule every month? If so, the rule is broken.
- Approve "Edge Case" Deals: Stop the Slack DMs. Create a standard process for approving non-standard deals before they close.
- Audit Plan Performance: Is the plan driving the behavior we modeled?
Step 2: Kill the "Black Box" (Transparency)
Trust dies in the dark. If a sales rep receives a payout amount that they can't replicate, they will assume it is wrong.
The Fix: You need a single source of truth.
- Documentation: Commission rules must be written in plain English, not legal jargon.
- Visibility: Reps should be able to log in and see exactly how a specific deal payout was calculated. If they can trace the math, they won't fight the result.
Step 3: Align Incentives with Company Goals
Conflict often happens because the plan incentivizes the wrong thing.
Scenario: The company goal is Profitability.
The Plan: Pays strictly on Top-Line Revenue.
The Result: Sales reps close massive, low-margin deals with heavy discounts. Finance gets angry. Sales gets paid.
The Fix: Align the metrics. If margins matter, include a "Gross Margin" kicker. If retention matters, pay on "Cash Collected" or include a clawback for early churn. When the rep's wallet aligns with the CFO's P&L, the fighting stops.
Step 4: Automate the "Busywork"
Manual spreadsheets are the enemy of alignment.
- They are slow (Finance is "holding up the check").
- They are error-prone (Sales doesn't trust the math).
- They are rigid (Ops can't change the plan easily).
Automating commissions isn't just about saving time; it's about removing the human error that causes the arguments. When the machine does the math based on agreed-upon rules, the emotion leaves the room.
Step 5: Formalize the Dispute Process
Disputes will happen. The problem isn't the dispute; it's the process (or lack thereof).
If a rep has to Slack the Controller to ask "Where's my money?", the system has failed.
- Create a Ticket System: All inquiries go through a formal form.
- Set SLAs: "All disputes will be reviewed and answered within 3 business days."
- Track the Data: If 40% of disputes are about the "Accelerator" clause, rewrite the clause.
Frequently Asked Questions (FAQ)
Who should own sales commissions: Sales or Finance?
Finance should own the audit and payment (the control). Sales Ops or RevOps should own the administration and plan design (the strategy). The two must balance each other.
How do you handle "gray area" commission disputes?
Always defer to the "Spirit of the Plan" document. Every plan should have a preamble stating the intent of the incentives. If a rep finds a loophole that violates the intent, the Governance Committee uses the "Spirit of the Plan" to make a final ruling.
What is the best way to improve trust between Sales and Finance?
Transparency. Give reps real-time visibility into their earnings. When they can see their commission accrual grow as they close deals, they stop viewing Finance as a gatekeeper and start viewing the plan as a motivator.
Related Reading
End the Cold War. Start the Partnership.
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