Back to all templates

Sales Commission Agreement

This sales commission agreement is entered into by and between [Sender.Company] “Employer”, and [Signer.Name], “Representative”. The purpose of this agreement is to document the sales commission structure which will govern compensation for goods or services sold by the Representative on behalf of the Employer.

PandaTip: The purpose of this sales commission agreement template is to establish a formal contract between a company and an individual whereby that individual is authorized to sell the company’s goods or services, and agrees to be compensated according to the company’s sales commission policy.

Authorization

This sales commission agreement serves as authorization for the Representative to sell goods or services on behalf of the Employer. These rights are non-transferrable and non-exclusive.

The Employer reserves the right to restrict the Representative’s rights through various restrictions, including geographic restrictions.

The Representative agrees to sell goods and services under the Employer’s brand. Goods or services may not be rebranded for any reason.

The Representative agrees to abide by the Employer’s pricing policies. The Representative shall not offer discounts without the Employer’s written approval.

Documentation

PandaTip: It is wise to be specific about which systems or documents the representative is using. You can list them in this section of the template, or attach blank versions of required documents at the end of the template.

The Representative agrees to use company-provided and approved documentation and tools for recording, submitting, and tracking sales and opportunities. This includes the use of company order forms, CRM, and other systems as necessary.

Non-Compete

PandaTip: If you require representatives to sign a separate non-compete agreement, be sure that this section of the sales commission agreement template matches that document’s terms.

The Representative shall not offer or represent brands which compete with the Employer while acting as a representative of the Employer, and for a period of two years thereafter.

Non-Disclosure

The Representative shall act in the best interests of the Employer in regards to confidential information and intellectual property at all times. This includes refraining from disclosing any information deemed proprietary, sensitive, or confidential to any third party.

Commission Structure

PandaTip: Use the text field in this section of the template to detail your company’s sales commission policy. Be sure to list any relevant details, such as quotas, variable commission percentages, draws, or payout schedules.

The Employer agrees to compensate the Representative for sales of the Employer’s goods or services as follows:

Acceptance

PandaTip: Once both parties have signed this sales commission agreement template, you can download a copy for your files using the menu to the right.

By signing below, the Employer and Representative agree to enter into this sales commission agreement with one another, and agree to the terms described herein.