If you are a salesperson or a company looking to hire sales representatives, a sales commission agreement is a crucial document to have. This agreement outlines the terms and conditions that both parties must abide by to ensure that all parties involved are treated fairly and equitably.
Here is a sample letter for a sales commission agreement that you can use as a guide:
[Company Name and Address]
[Date]
[Sales Representative Name and Address]
Re: Sales Commission Agreement
Dear [Sales Representative Name],
We are pleased to offer you the position of [Sales Representative] with our company. In this role, you will be expected to perform various sales activities including prospecting, lead generation, sales presentations, and closing deals.
To encourage your performance, we are offering you a commission on the sales you generate. The commission will be calculated as a percentage of the total sales you generate based on the following schedule:
[Add Commission Schedule]
This commission will be paid on the [Add Payment Schedule] following the close of each sale.
As part of this sales commission agreement, we expect you to:
• Conduct yourself professionally and ethically at all times.
• Represent our company in a positive manner and protect our reputation.
• Meet the sales targets established by the company.
• Report accurately on all sales activities on a regular basis.
• Abide by all rules and policies established by the company.
This agreement is binding to both parties and will remain in effect as long as you are employed with us.
If you agree to these terms, please sign and return this letter. We look forward to a productive working relationship with you.
Sincerely,
[Company Representative Name and Title]
[Company Representative Signature]
[Sales Representative Name and Signature]
Now that you have an idea of what a sales commission agreement entails, it’s important to customize it to suit your needs. Ensure that all parties are in agreement with the terms before signing the document. A well-drafted agreement can help prevent disputes and ensure that everyone is working towards a common goal.