Commission Agreement for Sales Reps

The company

Is the company a business or an individual?

Company's full legal name

For a business, use its registered name, including "LLC" or "Inc." if it has one.

Street address

City

State

ZIP code

Email optional

Used for written notices under the agreement.

Phone optional

The sales representative

Is the sales representative a business or an individual?

Sales Representative's full legal name

For a business, use its registered name, including "LLC" or "Inc." if it has one.

Street address

City

State

ZIP code

Email optional

Used for written notices under the agreement.

Phone optional

Products and territory

What products or services will the sales representative sell?

For example, "the Company's commercial kitchen equipment" or "annual subscriptions to the Company's scheduling software." List several on separate lines if needed.

Will the sales representative have a territory?

Specific customer accounts assigned to the sales representative optional

List named accounts, one per line. Leave blank if there are none.

Does the sales representative earn commission on orders from the territory or assigned accounts that reach the company directly, without the representative's involvement?

Yes No

Commission

How is the commission calculated?

For how many days after a commission is paid may the company deduct it if the customer's payment is refunded or charged back?

Draw against commissions

Will the company pay a monthly draw against future commissions?

Yes No

A draw is an advance that is paid back out of commissions as they are earned. It is not a salary.

Statements and payment

How many days after the end of each month will the company send the commission statement and pay?

How will commissions be paid?

Expenses and conduct

Who pays the sales representative's business expenses?

Travel, phone, samples shipping, trade shows and similar costs.

May the sales representative offer customers discounts from the company's price list?

Will the company provide samples, demonstration units or sales materials?

Yes No

Term and ending the agreement

Start date

End date optional

Leave blank if the agreement continues until either side ends it.

How many days' written notice must either side give to end the agreement early?

After the agreement ends, for how many days will the representative still earn commission on orders it obtained before the end, when the customer pays within that time?

After the agreement ends, within how many days of receiving a customer's payment must the company pay the commission on it?

The agreement also requires payment within any shorter period the governing law sets.

Final terms

Should the sales representative keep the company's customer, pricing and business information confidential?

Yes No

Anything else both sides agreed to? optional

Which state's law should govern this agreement?

Usually the state where the company or the sales representative is based.

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Commission Agreement

The company

The sales representative

Products and territory

Commission

Draw against commissions

Statements and payment

Expenses and conduct

Term and ending the agreement

Final terms

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