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Commission Agreement

Create a commission agreement for an independent sales rep: territory, rate and net sales, chargebacks, draw, and commissions after it ends.

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What this document does

An agreement between a company and an independent sales representative who is paid by commission, covering the products and territory, the commission rate and how net sales are measured, when commissions are earned, chargebacks, an optional draw against commissions, monthly statements and payment, expenses, the representative's conduct, and commissions after the agreement ends.

What it covers

  • Parties
  • Appointment, Products and Territory
  • Commissions
  • Statements and Payment
  • Expenses
  • Sales Conduct
  • Term
  • Ending the Agreement
  • Additional Terms
  • General Provisions

A template you fill in yourself from your own answers. LeaseCraft is not a law firm and does not give legal advice; for advice about your situation, talk to a lawyer.

How it works

1

Answer the questions

Plain-language questions about the people, dates and terms.

2

Preview it free

Read the document built from your answers and change anything before you download.

3

Download PDF and Word

Included with LeaseCraft Annual ($19.99/year).

Questions about the Commission Agreement

No. It is for an independent sales representative who works as a contractor and is paid by commission. It states that the representative is not an employee, controls how it sells, and pays its own taxes and, unless the company approves otherwise, its own expenses. Calling the representative a contractor in the agreement does not by itself decide whether the law treats them as an employee; that depends on how the relationship works in practice.

When the company receives the customer's payment for an order it has accepted, not when the order is placed or invoiced. The company may accept or reject any order, and commissions on amounts later refunded or charged back can be deducted from future commissions.

Choose a percentage of net sales, with an optional higher rate above a monthly threshold, or a flat amount per sale. Net sales are invoiced amounts less returns, discounts, taxes and shipping charges.

The representative still earns commission on orders it obtained before the end if the customer pays within the number of days you choose. Those commissions must be paid within any period the governing law requires and no later than the deadline you set.

No. This agreement does not include one. You can include a confidentiality clause that protects customer lists and pricing without limiting whom the representative may sell to later.

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