Free sales commission agreement template
This sales commission agreement template builds an independent sales representative agreement: the products the rep sells, the territory, whether it's exclusive, the commission rate on money actually collected, when commission is paid, refunds and chargebacks, expenses, confidentiality, and commission on deals that close after the agreement ends. Download the PDF, get the Word version by email, or send it for e-signature.
This is a general template, not legal advice. It may not fit your situation or your state's laws. Have a licensed attorney review it before you use it. EnFlow is not a law firm and is not responsible for how this template is used.
What this sales commission agreement covers
- Appointment
- Commission
- Representative's role
- Confidentiality
- Term and ending
- Limit of liability
- General terms
Questions
When is sales commission earned?
In this sales commission agreement template, commission is earned when the company actually collects payment from the customer, not when the deal is signed, and it's paid by a set day of the following month with a statement. Refunded payments are subtracted from future commission.
Is an independent sales rep an employee?
An independent sales rep is a contractor, not an employee, if they really control their own hours and methods; this template sets them up that way, with a Form 1099 where required. Misclassifying an employee as a contractor can bring penalties, and state tests differ, so check yours.
What happens to commission after the agreement ends?
A post-termination clause says whether the rep still earns commission on deals they brought in that close after the agreement ends. This template pays commission on deals closing within a number of days you choose, often 30 to 90.
Can a sales rep sign the agreement online?
Yes, a sales rep can sign the agreement online. Sign up free to send it for e-signature, and the signed copy is kept with the signer's details. The free plan includes 5 estimates, invoices and contracts a month.