Ad Space Agent Sues Over Unpaid Commissions

Michael Talve, CEO

Written by
— Updated on December 19, 2017

This case involves unpaid sales commissions for a salesman who quit. The plaintiff worked at a magazine and was in charge of selling ad space to different companies. The magazine, however, was barely breaking even, and instated new policies of unpaid training periods while reducing the amount of commissions being paid to their sales agents. Eventually, the magazine put a three-month freeze on commissions paid to agents, delaying payment until the magazine was in a better financial state. The plaintiff quit his job and brought suit against the magazine for unpaid commissions; at the time of the trial, the company had been additionally sued by a past intern who alleged that the company’s wage policies resulted in an unpaid internship with unreasonable hours.

Question(s) For Expert Witness

  • What were normal commission rates/percentages for sellers of ad space from '04-'07?

Expert Witness Response E-006311

The specific rate that a salesperson is entitled to is dependent upon a number of factors. The salesperson’s involvement in direct marketing, the geographic location, the climate, the amount of subscribers, the salesperson’s duration at the magazine, any additional responsibilities, and other items may factor into the salesperson’s exact percentage. By examining these factors, and comparing them to those at other, similarly-situated magazines, I can reach a figure as to the appropriate commissions for the plaintiff.

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