Health Wellness and Fitness, Information technology and Services, Insurance, Leisure, Travel and Hospitality


Sales Commission Agreement

What is a sales commission agreement? It includes a salesperson's terms of employment. The agreement also outlines the compensation structure and working relationship between employee and employer.

In short, it allows both the salesperson and their employer to agree on compensation, commission, and job responsibilities. Here are the key elements that should be included in a sales commission agreement.

1. Authorization

This section gives the okay for the salesperson to sell products or services on behalf of their employer. The employer often limits the selling by restricting the regions or territories in which the offerings are sold and prohibiting the rebranding and reselling of their products.

2. Documentation

The salesperson must agree to use documentation and tools that are approved by the company to keep track of their sales activities. For example, this would include CRM databases, software, forms, etc.

Agent best suited for this opportunity

Non-Disclosure Clause The non-disclosure clause ensures that the employee agrees to refrain from sharing confidential information or intellectual property. 5. Commission Structure This is where you share the details of the commission structure. After reading this section, the employee and employer should have a clear understanding of: The compensation structure (e.g., commission, performance incentives, bonuses) When a commission is earned When commissions are paid Consequences of cancellations, refunds, or default of payments from customers 6. Agreement Both the salesperson and their employer agree to the details of the sales commission agreement by signing and dating the document. For additional recommendations and insight, consult your legal team or seek out the advice of a lawyer to help you carefully craft your sales commission agreement.