Product Info - Free Commission Agreements - Manufacturing: Rep Agency
Sample Manufacturer Rep Agency Sales Commission Agreement Template
iRep Agency Compensation Agreement
Revision Date: ____________
This document describes the agreement between ________________________________ (“Company”) and ___________________________________ (“Rep Agency”) regarding terms related to compensation.
Company and Rep Agency enter into this agreement whereby Rep Agency and Rep Agency's personnel provide sales services to the Company in return for compensation specified in this agreement.
This agreement covers the period starting from ii_______________ and ends on ________________.
All commissions will be calculated and paid once every month, for the preceding month. Commissions will be calculated and paid 30 days in arrear, following the month for which commissions are calculated.
The sales compensation is not capped.
iiiProduct Sales Commission
Sales Commission is paid to the Rep Agency based on the sale of the following products that the Rep Agency is involved in
Rep Agency earns commissions when a sales order to the customer is received.v
Sales Revenue minus Tax and Shipping charges are credited to the Rep Agency.
Sales credits are provided to the Rep Agency. Based on the product being sold the Rep Agency is paid different commission rates.
Products Commission Rate
Flow Meter 5%
Blood Pressure 7%
Assuming Rep Agency books the following sales in the first month-
Order1 Flow Meter $60,000
Order2 Blood Pressure Monitor $30,000
Commissions will be calculated as following:
Order1 $60,000 at 5% = $3.000
Order2 $30,000 at 7% = $2,100
Total Commissions payable: $5,100
Rep Agency is not owed any other compensation.
Termination of Agreement
On voluntary or involuntary termination of Rep Agency agreement with the Company, commissions will be paid on transactions dated prior to the termination date only. Any amounts owed to the Rep Agency will be according to federal and state regulations after withholding taxes and other dues.
1. Rep Agency agrees to follow all Federal and Local laws while engaged in providing services to the Company during the period of this agreement.
2. Rep Agency shall use the most ethical practices while engaging in any sales activity.
3. Rep Agency 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.
4. This entire agreement shall be governed by the laws of the State of ___________.
Company Rep Agency
i Any part of this document can be changed or overridden based on your needs.
ii 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.
iv Alternatively, replace products with customers or types of business.
v Alternatively commission can be due on invoicing or shipping of goods or other events.