Create Your Own Commission Agreement Using Our Template

Commission is a type of remuneration, which is variable in nature, is given to an individual or a business based on the level of performance. It’s where a company will reward a salesperson with a commission fee based on the amount of revenue they generate. Here, the payee business is called “principal” and the receiving party is called “agent”.

Why is a commission agreement important?

Loyalty and performance are the two most challenges every business encounters at some point of time. Offering commission is one of the most efficient ways to improve performance of the team as well as offer the best incentive as per their performance. In order to avoid any future legal trouble, an agreement is is the best way

When Do you Need A Commission Contract?

That depends on the size of your sales team and the turnover of your company. If you are looking to an efficient way to boost your sales and create a win-win situation for both your company as well as employees, you should go for a commission system. Creating a commission agreement is important, in order to ensure a smooth operation moving forward, you should sign a contract with your agents. And then our template will be your best companion to cut down all the legal hassle of creating a contract.

Set meeting with new agents

A commission agreement should always be executed in person. For the first time, at least, you should always connect with your agent to ensure he/she is comfortable with the terms laid out in your agreement.

Define commission structure

The commission rate is the most important part of a commission agreement. This part will determine your revenue share with the agent and based on this is entirely based on how you want to run your business.

Transparency is the key

You should explain the commission contract to your agents and let them understand why you’ve structured the agreement the way you have.

Use a template for faster processing

Creating an agreement can be tricky, and a template can help you get the most crucial job done in a jiffy.

FAQ About Our Commission Agreement Template

Does a commission agreement protect a salesperson?

Yes, of-course! A well defined agreement can protect both the salesperson as well as the company from any future payment issue or legal trouble. Our template has been developed in collaboration with legal advisors and proof readers. Just edit it and use as per your needs.

How to terminate a commission contract?

A contract can be terminated when a party breaches the agreement and / or when both the parties mutually agree to terminate the contract. Make sure to speak to your own legal advisor to ensure the termination clause is mentioned as per the nature of your business and as per your agreement with the contractor.

How to use our template?

Using our template is simple. You just need to download the template, edit as per your need and that’s it.

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Commission Agreement