Sales Agent Commission Agreement Sample: A Guide for Businesses
When it comes to growing your business, hiring sales agents can be a key factor in increasing revenue and expanding your customer base. However, it’s important to ensure that your sales agents are motivated and incentivized to achieve the best results for your company. One way to achieve this is by creating a sales agent commission agreement.
A sales agent commission agreement outlines the terms and conditions of the commission that a sales agent will receive for their efforts in driving sales for your company. It’s a legally binding document that clarifies the compensation structure for sales agents and helps to avoid any confusion or misunderstandings between both parties.
To help you get started, we’ve created a sample sales agent commission agreement that you can customize to fit your business needs.
Sales Agent Commission Agreement Sample
This Sales Agent Commission Agreement (“Agreement”) is made and entered into on [Date] by and between [Company Name], (hereinafter referred to as “Company”) and [Sales Agent Name], (hereinafter referred to as “Agent”).
1. Obligations of the Company
The Company agrees to pay the Agent a commission for products or services sold by the Agent. The Company also agrees to provide adequate training, marketing materials, and support to the Agent to ensure their success in selling the Company’s products or services.
2. Obligations of the Agent
The Agent agrees to sell the Company’s products or services in accordance with the training and guidelines provided by the Company. The Agent shall also comply with all applicable laws and regulations related to the sale of the products or services.
3. Commission Structure
The commission structure for the Agent shall be as follows:
a. [Percentage]% commission on all sales made by the Agent.
b. [Percentage]% commission on all sales made by the Agent once they have achieved [Sales Goal].
c. [Percentage]% commission on all sales made by the Agent once they have achieved [Sales Goal].
4. Payment
The Company shall pay the Agent’s commission [Frequency of Payment] following the end of each pay period. The Agent shall be responsible for providing accurate and complete information for commissions owed.
5. Termination
Either party may terminate this Agreement by giving [Notice Period] written notice to the other party. Upon termination, the Company shall pay the Agent any commissions owed up until the termination date.
6. Confidentiality
The Agent shall maintain the confidentiality of all proprietary information, trade secrets, and client information obtained during their work for the Company. The Agent shall not disclose such information to any third party without the Company’s prior written consent.
7. Governing Law
This Agreement shall be governed by and interpreted in accordance with the laws of [State], without regard to its conflict of laws principles.
In witness whereof, the parties have executed this Agreement as of the date first written above.
[Company Name]
By: _______________________________
[Authorized Signature]
Title: ______________________________
Date: ______________________________
[Sales Agent Name]
By: _______________________________
[Authorized Signature]
Title: ______________________________
Date: ______________________________
Conclusion
Creating a sales agent commission agreement can benefit both the company and the sales agent by clarifying expectations and providing transparency in commission payments. Be sure to consult with legal and financial experts when drafting your agreement to ensure compliance with applicable laws and regulations.
By utilizing the sample agreement provided, you can create a commission structure that is fair and motivating for your sales agents, ultimately leading to increased sales and revenue for your business.