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Clawback

Commission recovered from a rep when a booked deal churns, downgrades or is refunded within a defined window.

In depth

Standard clawback windows: 6–12 months on new logo, sometimes 3 months on expansion. Aligns rep incentives with revenue quality, not just booking speed. Contentious in every comp-plan negotiation.

Related terms

Comp Plan
The written document governing how a rep is paid, base, variable, rate, accelerators, SPIFFs and clawbacks.
Churn
The rate at which customers or revenue leave the business in a period.
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