10+ Agency Commission Agreement Templates in PDF | WORD

Step 6: Sign and Date

Once you have followed all of the above steps, you will have your agreement prepared. The final step is to provide spaces for putting the signature of both parties and the date of issuance of the contract. This step is the only way to prove that both parties acknowledge and comply with the agreement. Such shall also serve to prevent the forgery of the document.

Sales Commission Plan

The commission strategy for your company forms the framework for the sales commission agreement. You need to develop this plan first and only can you proceed to agree. The elements of this plan that need to be included in the agreement are:

When the Commission is being earned:

It is crucial that the contract sets out explicitly and precisely when the sales representative is receiving his or her commission. For instance, there may be a significant difference between commending a sales agent with commissions on the booking of order versus when the order is paid for.

When the Commission is to be paid:

The contract should also assert when commissions are payable and the date up to the calculation of the amount of each payment.

Refunds, defaults, and/or cancellations:

Any sale a business makes in an ideal world is a final one. However, several events may turn a sale into a non sale. Whether it is the canclation of an order or a consumer who defaults on payment or the return of a product for a refund, the arrangement needs to account for these circumstances as well as the effect on commissions that they might have.

Performance Incentives:

Most companies offer their sales reps benefits as a reward for more sales, such as rewards for hitting a certain number of sales, or a commission system where the amounts paid out are tiered.