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Sales Policy & Procedure for Commission Payouts to International Agents

Sales Policy & Procedure for Commission Payouts to International Agents

Effective Date: [Month Day, Year]


At [Your Company Name], we recognize the vital role that our international agents play in expanding our global reach and increasing market penetration. This Sales Policy and Procedure is a testament to our commitment to establishing a clear and equitable framework for commission payouts to these dedicated individuals and entities who represent us worldwide.

Our international agents form a diverse network of partners, each contributing their unique skills and efforts to promote and sell our products and services. This policy aims to provide a unified structure for commission payouts, one that fosters trust, motivates performance, and ensures consistency across different business sectors and geographical regions.

We understand that success in sales is achieved through collaboration, transparency, and fairness. Through this policy, we seek to empower our international agents with the knowledge of how commissions are calculated and disbursed, while also setting clear expectations for eligibility, reporting, and dispute resolution.


In this Sales Policy and Procedure, certain terms are used, and it is important to clarify their meaning:



International Agents

Individuals, organizations, or entities located outside the home country of [Your Company Name] and contracted to represent the company's products and services globally. 


A financial incentive awarded to international agents as a percentage of the total sales they generate. 


These criteria include maintaining an active agent status, adherence to the terms and conditions of the agent agreement, and the submission of accurate and timely sales reports.

Sales Reporting

The process by which international agents provide detailed, accurate reports of their sales activities.

Taxes and Withholding

The financial obligations and responsibilities related to taxation and withholding of earned commissions.


We strive to offer a commission structure that not only rewards our agents for their hard work but also reflects the intricacies of each business sector. Below, we outline the key aspects of our commission structure:

A. Business Sectors

Our business operations encompass a diverse range of sectors, including but not limited to:

  • Manufacturing: For agents involved in selling our manufacturing products, the commission structure may be tailored to consider production costs, order volumes, and customer demands. We aim to strike a balance that encourages agents to maximize sales while maintaining profitability.

  • Technology: In the dynamic field of technology, commission rates may vary depending on the product's lifecycle, technical support required, and potential for recurring revenue. Our commission structure for technology products acknowledges these factors.

  • Services: Agents involved in promoting our services may benefit from a commission structure that is sensitive to the duration and scope of the service engagement. The rates are designed to reflect the long-term value of service contracts.

  • Retail: In the retail sector, agents may receive commissions based on sales volume, customer satisfaction, and store performance. Different retail models, such as e-commerce and brick-and-mortar, may have distinct commission structures.

B. Product or Service Types

To further tailor our commission structure, we consider the specific product or service types offered within each sector. For instance:

  • Product Complexity: Complex products may yield higher commissions due to the additional sales effort required and potential for value-added services. Simpler products may have straightforward commission rates.

  • Subscription Models: Some products or services, such as software subscriptions or maintenance contracts, may follow subscription-based commission structures. Agents may earn commissions for initial sales and ongoing revenue generated from renewals.

  • Tiered Structures: In cases where a product line or service offering spans various price points, our commission structure may adopt a tiered approach. This incentivizes agents to upsell or cross-sell within the product line.

C. Negotiated Agreements

While we maintain general commission structures for our business sectors and product/service types, we understand that individual agents may have unique agreements based on their performance, client base, or negotiation skills. Such agreements are outlined in the agent's contract and will supersede the standard commission rates as long as they remain within the bounds of the Company's overall compensation policies.

D. Incentive Programs

To further motivate our international agents, we may introduce incentive programs, bonuses, or special promotions in alignment with our commission structure. These incentives are designed to encourage exceptional performance, sales growth, or strategic objectives and will be communicated to agents as they arise.


To be eligible for commission payouts, international agents must meet the following criteria:

A. Active Agent Status

Agents must maintain an active status as defined in their agent agreement with [Your Company Name]. Active status signifies that the agent remains in compliance with the terms and conditions outlined in their contractual agreement. This includes but is not limited to:

  • Continuously representing and promoting the products or services of [Your Company Name].

  • Adhering to ethical and professional standards in their sales activities.

  • Not engaging in any activities that could damage the reputation or interests of [Your Company Name].

B. Contractual Compliance

International agents are required to comply with the terms and conditions specified in their agent agreement. This includes, but is not limited to:

  • Adherence to sales quotas, if applicable, as outlined in the agreement.

  • Following any specific guidelines or restrictions pertaining to the promotion of products and services.

  • Ensuring that the Company's intellectual property and branding are used in accordance with the provided guidelines.

C. Timely Submission of Sales Reports

Accurate and timely submission of sales reports is essential to be eligible for commission payouts. Agents must submit these reports in a structured and approved format by the deadlines specified in their contract with [Your Company Name]. The reporting period may be on a monthly or quarterly basis as determined in the contract.

D. Compliance with Local Regulations

Agents operating internationally must comply with all relevant local and international regulations pertaining to their sales activities. This includes but is not limited to tax regulations, export-import laws, and any industry-specific regulations.

E. Ethical Conduct

International agents are expected to uphold the highest ethical standards in their interactions with clients, customers, and business partners. This includes, but is not limited to:

  • Providing accurate and honest information about the products or services.

  • Avoiding deceptive or misleading practices in sales and marketing efforts.

  • Treating all customers and clients with respect and professionalism.

F. Code of Conduct

All international agents must adhere to the Company's code of conduct, which outlines the expected behavior and standards of professionalism while representing [Your Company Name]. The code of conduct includes guidelines related to honesty, integrity, confidentiality, and conflict of interest.

Failure to meet any of these eligibility criteria may result in a temporary suspension of commission payouts until compliance is achieved or, in more severe cases, may lead to the termination of the agent's contract with [Your Company Name].


International agents play a crucial role in our business's success. To ensure accurate and timely commission payouts, it is imperative that they maintain meticulous sales reporting. The following details provide a more comprehensive understanding of this process:

A. Reporting Frequency

International agents must submit sales reports to the Company according to the agreed-upon reporting schedule. This schedule may vary depending on the business sector or agent's contract and can be on a monthly, quarterly, or other predefined basis. The reporting period typically aligns with the agreed-upon commission calculation cycle.

B. Report Contents

Sales reports should include essential information, such as:

  • Customer names or identification numbers.

  • Product or service details.

  • Transaction dates.

  • Transaction amounts.

  • Any special terms or conditions related to the sale.

C. Format

Agents can use the Company's provided reporting template or another format that is mutually agreed upon. Electronic submission is preferred, as it streamlines the commission calculation process.

D. Submission Deadline

Sales reports must reach the Company's accounting department by the deadline, as stipulated in the agent's contract. Late submissions may result in delayed commission payouts.


The calculation of commissions is a fundamental aspect of our compensation structure. The following points outline the process:

  1. Accurate Computation: The Company computes commissions based on the information provided in the sales reports. It is crucial that these reports are accurate and complete to ensure precise commission calculations.

  2. Commission Formula: The commission amount is determined using the following formula:

    Commission = (Total Sales Amount) x (Applicable Commission Rate)

  3. Total Sales Amount: This represents the cumulative value of sales generated by the agent during the designated reporting period. It is the sum of the transaction amounts for all successful sales made by the agent during that period.

  4. Applicable Commission Rate: The percentage-based commission rate applicable to the specific business sector, product, or service is detailed in the agent's contract.

  5. Currency Conversion: In cases where transactions occur in different currencies, the Company will convert all amounts to the agreed-upon currency using an established exchange rate. Currency conversion is executed at the time of the transaction or at a point determined in the agent's contract.

  6. Calculation Discrepancies: If there are discrepancies or questions regarding the commission calculation, agents may request clarification or dispute resolution by contacting the appropriate party. It is important that agents review their calculations diligently to ensure accuracy.

  7. Commission Statements: Upon completion of the commission calculation, the Company will provide agents with a detailed commission statement, which outlines the total commission amount, calculations, and any relevant deductions.


Commission payouts are processed on a regular basis to ensure that international agents receive their well-earned compensation in a timely and efficient manner. The Company understands the importance of a consistent payment schedule, and therefore, we have established a clear and reliable system to facilitate these transactions.

  • Payment Frequency: The Company processes commission payouts on a monthly basis. The specific payment frequency is determined based on the terms outlined in each agent's individual contract.

  • Payment Date: Commission payments will be disbursed on or before the end of each payment period. This date is established to provide agents with a predictable timeline for their compensation and to allow for any necessary financial planning.

  • Payment Methods: Agents can choose their preferred method of receiving their commission payouts. We offer various payment options, including bank transfers, checks, electronic funds transfers (EFT), and other methods that may be agreed upon between the agent and the Company. Agents must ensure that their payment information is accurate and up-to-date in our records.


International agents should be aware of their responsibility for handling tax obligations and any required withholding on their commissions. It's crucial to comply with local tax laws and regulations in their respective countries. The Company will provide support by offering the necessary documentation and reporting for tax purposes, as outlined below:

  • Tax Documentation: At the end of each fiscal year, the Company will issue annual tax statements to agents, summarizing their total earnings and commission payouts for the year. These statements are designed to assist agents in their tax reporting and compliance.

  • Withholding Obligations: In some cases, the Company may be legally required to withhold taxes or duties from commission payouts, depending on the agent's tax residency and the applicable tax treaties or agreements between countries. These withholding obligations will be clearly communicated to agents in advance.

  • Consultation with Tax Professionals: To ensure full compliance and to address any tax-related questions or concerns, international agents are strongly encouraged to seek advice from qualified tax professionals who are well-versed in international taxation and the tax laws of their respective countries. The Company does not provide specific tax advice to agents.


At [Your Company Name], we understand that disputes or discrepancies can occasionally arise in any business relationship. We are committed to resolving such matters in a fair and timely manner. If an international agent has concerns or disputes regarding their commission payouts, the following procedure should be followed:

  1. Initiating the Dispute: Agents must submit their concerns in writing to the designated point of contact or department responsible for dispute resolution within three (3) business days. This written communication should include a detailed description of the issue, supporting evidence, and any other relevant information.

  2. Review and Investigation: Upon receiving the written dispute, the Company will initiate an impartial review and investigation. This may involve discussions with the agent, examination of sales records, and consultations with other relevant parties.

  3. Resolution: The Company is committed to providing a resolution to the dispute within five (5) business days. The resolution may include, but is not limited to, adjustments to commission payouts, clarification of terms, or other mutually agreeable solutions.

  4. Escalation: If the agent is not satisfied with the resolution provided by the Company, they may request further review or escalation of the dispute to a higher authority within the Company. The Company will provide guidance on this process.


Termination of an agent's agreement with [Your Company Name] can occur for various reasons, such as contract expiration, non-compliance with the terms and conditions of the agent agreement, or other legitimate grounds. In the event of termination, the following procedures will apply:

  • Calculation of Outstanding Commissions: The Company will calculate and settle any outstanding commissions for the agent based on the sales generated before the termination date. This calculation will be performed according to the commission structure and calculation method outlined in this policy.

  • Payment and Settlement: The outstanding commissions will be paid to the agent as per the regular commission payout schedule, provided the agent has met all the necessary reporting and eligibility requirements.

  • Return of Company Property: The agent is responsible for promptly returning any Company property, materials, or equipment upon termination. Failure to do so may result in deductions from the final commission payout to cover the cost of unrecovered items.


At [Your Company Name], we recognize the importance of maintaining and updating our policies to ensure they remain effective and compliant with changing legal requirements and industry standards. To uphold this commitment, we have established a policy review process as follows:

  • Annual Review: This Sales Policy & Procedure for Commission Payouts to International Agents will be subject to an annual review to assess its effectiveness and relevance.

  • Amendment and Update: The Company may amend or update this policy as necessary to address changes in commission structures, regulations, or business practices. Such amendments will be communicated to all international agents, providing them with the most up-to-date information.

  • Agent Feedback: We welcome feedback and suggestions from our international agents regarding the policy's practical application and any potential improvements. Feedback can be submitted at any time and will be considered during the policy review process.

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