Free Commission Agreements - Media: Sales Rep
Sample Media Sales Rep Sales Commission Agreement Template
Sales Rep Compensation Agreement
Revision Date: i____________
This document describes the agreement between between ii_____________________________ (“Company”) and iii_________________________________ (“Payee”) regarding terms related to compensation.
Company and Payee enter into this agreement whereby Payee provides services to the Company and customers of company, in return for compensation specified in this agreement.
Duration:
This agreement covers the period starting from iv___________ and ends on _______________.
Commissions will be calculated and paid once every week, for the preceding week. Commissions will be calculated and paid out as part of the next payroll cycle, following the month for which commissions are calculated.
Services:
The primary service rendered by this payee is to sell the services of the Company in the form of contracts.
Variable Compensation:
Targeted variable compensation for the full year is v ______________.
Other Compensation:
Payee is not due any other compensation as part of this agreement.
New Contracts Commission
This incentive pays commissions on NEW contracts acquired by the Payee. This commission is paid monthly.
Credits:
Any Contracts that are due to the Payee’s primary efforts are eligible for this commission. Commissionable transactions are signed contracts to customer.
Calculation:
The contract has duration. Based on the duration of the contract a different commission rate will be used for calculations. Commissions are calculated and paid when payments are received from customer. Payments are expected to be received throughout the contract duration.
Contract Duration Commission %
3 months and less 5%
4 to 6 months 7%
6 to 12 months 10%
More than 1 Year 15%
Example:
Contract: #1
Duration: 1 Year
Month: 2
Commission Rate: 10%
Payments Received: $4,000
Commission Amt: $4,000 x 10% = $400
Renewal Contracts Commission
This incentive pays commissions on contracts renewed by the Payee. This commission is paid monthly.
Credits:
Any Contracts that are due to the Payee’s primary efforts are eligible for this commission. Commissionable transactions are signed contracts to customer.
Calculation:
All renewal contracts are paid at the same commission rate, as long as the contract is active.
Commission rate for renewal contracts are paid at 4%
Example:
Contract: #2
Month: 28
Commission Rate: 5%
Payments Received: $4,000
Commission Amt: $4,000 x 5% = $200
Draw
Payee has a monthly draw. The monthly draw limit is $3,000 and is effective for the first 6 months after the Payee start date.
Payee will be advanced the amount difference between commissions earned during the week and the draw limit, if commissions earned is less than the draw limit.
If commissions earned is greater than the draw limit and there is a current draw balance owed to the Company, then the excess amount will be used to pay down the draw balance.
Draw recovery will continue until draw balance is reduced to zero.
Splits
Commissions can be split with other Payees, on a deal-by-deal basis with prior agreement from the company.
A spit can be made between one or more Payees playing the same role. In either case, a split percentage would apply indicating the payee’s share based on involvement.
Termination of Employment
On voluntary or involuntary termination of Payee’s engagement with the Company, commissions will be paid on transactions dated prior to the termination date only. Any amounts owed to the Payee will be according to federal and local regulations after withholding taxes and other dues.
Other Terms
1. Payee agrees to follow all Federal and Local laws while engaged in providing services to the Company during the period of this agreement.
2. Payee shall not engage in any other employment during the term of this agreement. Company reserves the right to require Payee to terminate any such other employment at Company’s sole discretion.
3. Payee shall indemnify Company and hold harmless against any Loss or Damage incurred by the Company due to Payee’s gross negligence or misrepresentation during the duration of this agreement.
4. Payee shall use the most ethical practices while engaging in any sales activity.
5. Payee agrees to protect all confidential material including prospect data, sales data, and client information belonging to the Company and shall take all reasonable care in making sure that such confidential material is not disbursed to anyone outside the company.
Copyright, CellarStone, Inc. Page 5 of 6
This entire agreement shall be governed by the laws of the State of _______________.
Company Payee
_______________________ __________________________
By By
_______________________ __________________________
Name Name
_______________________ __________________________
Title Title
_______________________ __________________________
Date Date
i This date will give us information as to when this agreement was written and distinguish it from similar other agreements.
ii Fill out the company name here.
iii Fill out the payee’s full name here.
iv Enter the start and end date for the sales commission plan effective period. Most companies use the calendar or fiscal year start and end dates for these values. Some companies may not have an end date specified.
v If there is a targeted compensation for the full year, it can be entered here. Alternatively, this whole section can be removed.
