Free sales commission agreement template (Word)

SALES COMMISSION AGREEMENT

This Sales Commission Agreement is made on [Effective date] between [Company name], [Company address] (the "Company"), and [Representative name], [Representative address] (the "Representative").

1. Appointment

The Company appoints the Representative to sell [Products description] (the "Products") to customers in [Territory]. The territory is exclusive: while this Agreement is in force, the Company will not appoint another sales representative for it. The Representative will describe the Products honestly and follow the Company's published prices and terms, and has no authority to sign contracts, make promises or accept payments for the Company.

2. Commission

The Company will pay the Representative a commission of [Commission percent]% of the net sales price of each sale of Products to a customer the Representative introduced, rising to [Accelerator percent]% on the part of the Representative's net sales in a calendar [Accelerator period] that is above [Accelerator threshold amount]. "Net sales price" means the amount invoiced to the customer, less taxes, shipping, discounts, returns and credits.

Commission is earned only when the Company receives the customer's payment, and only on the amount received.Commission is earned when the Company accepts the customer's order. If the Company refunds or credits a sale, or the customer has not paid within [Chargeback days] days of the invoice date, any commission already paid on that sale will be deducted from the Representative's next commission payment.

3. Payment

The Company will pay the commission earned in each calendar month within [Payment days] days after the end of that month, with a statement showing the sales and how the commission was worked out. The Representative may see the records needed to check a statement.

The Company will also pay the Representative a draw of [Draw amount] each month as an advance on commission. If the draw is more than the commission earned in a month, the difference is carried forward and deducted from later commission.If the commission earned in a month is less than the draw, the Representative keeps the draw and the difference is not carried forward.

4. Expenses and status

The Company will reimburse reasonable selling expenses that it approves in writing before they are incurred.The Representative pays their own selling expenses.

The Representative is an employee of the Company. This Agreement sets out how their commission is earned and paid, in addition to the terms of their employment.The Representative is an independent contractor, not an employee, decides how to carry out the work, and is responsible for their own taxes and insurance.

5. Term and termination

This Agreement starts on [Effective date] and continues until either party ends it by giving the other [Notice days] days' written notice.

After this Agreement ends, the Company will pay commission on orders it accepted before the end date, and on orders from customers the Representative introduced that it accepts within [Tail days] days after the end date, once that commission is earned under section 2.

6. Confidentiality

The Representative will keep the Company's customer lists, prices and other non-public information confidential, during and after this Agreement, and use it only to perform this Agreement.

7. General

This Agreement is the entire agreement about the Representative's commission and replaces any earlier commission plan. Any change must be in writing and signed by both parties. If any part of this Agreement cannot be enforced, the rest remains in effect. This Agreement is governed by the laws of [Governing law].

For [Company name]: ____________________________ [Company signatory] Date: ______________

Representative: ____________________________ [Representative name] Date: ______________