Sales Commission Agreement
Agreement defining the commission structure for a sales employee or representative, including rates, quotas, and payment timing.
Instructions
Define the commission structure clearly: base salary plus commission, draw against commission, or commission-only. State the commission rate(s) and how they apply to different products or deal sizes. Define when a commission is earned (at booking, invoicing, or payment). Address chargebacks for returns or cancellations. Specify the payment schedule. Address what happens to pending commissions upon termination. Some states have specific commission protection laws.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.