HubSpot will now only pay commissions for net revenue, known as the fees actually paid by the end user for their HubSpot subscription service. Commissions previously paid to partners either for a client that never paid or after a client stopped paying for their HubSpot subscription will be withheld from future commissions payments.
Starting with Q2 2020 commissions payments, HubSpot will only pay commissions for net revenue, or in other words, the fees actually paid by the end user for their HubSpot subscription service.
In the past, we calculated your commission payments based on any clients who were active on the last day of the month. In the rare cases where your client was still active but never paid or stopped paying for their contract, we still paid you commissions on revenue we didn’t receive.
This also means if you were already paid commissions in 2020 for a client that either never paid or stopped paying for the HubSpot subscription that you sold to them, the amount overpaid to you by HubSpot will be deducted from your future commissions payments until it’s fully recouped. Please note, we'll only be recouping overpaid commissions in 2020, not prior years.
Partner A sold Marketing Hub ($800) to Client B in April 2020. For April through June 2020, the partner is paid $480 in commissions ($800 x 20% margin x 3 months). The client then stops paying from July - September 2020, but doesn't becomes inactive until October.
Partner A would retain commissions for Q2 2020 when the client was paying, but the $480 paid to Partner A for Q3 2020 would be deducted from their Q4 2020 commissions payout and they would not be paid any commissions for the client moving forward.
Only clients who continue to pay for their HubSpot subscription will count towards your sold MRR credit. If a client has churned due to non-payment, you’ll no longer see them in your Partner Dashboard.
This is already a part of our partner agreement, and you can find more details on this in Section 4B - “Revenue Share Payment” of the HubSpot Solutions Partner Program Agreement.
Your main partner point of contact will be notified in advance if your commissions payment is impacted by this change. If you have any questions or would like to know more information about how your commissions payment may be impacted, please reach out to your channel consultant (CC) or channel account manager (CAM).