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Product Info - Free Commission Agreements - Merchant Services: Sales Rep

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Sample MerchantServicesSales Rep Compensation PlanTemplate

MerchantServicesSales Rep Compensation Agreement

Revision Date:____________

This document describes the agreement between iii______________ _

(“Company”) and iv(“Sales Rep”) regarding terms related to compensation.

Company anSales Rep enter in to this agreement wherby Sales Rep provides saleserviceto the Company in return for compensation specified in this agreement.

Duration:

This agreement covers the period starting from and ends on

.

 All commissions  will be calculated and paid once very month, forth preceding month. Commissions will be calculated and paiout as part of the next payroll cycle,following the month for which commissions are calculated.

Base Pay:

viSales Rep's base salary (if any) is specified as part of a separate agreement.

 Sales Compensation:

Targeted sales compensation for the fully ear is vii________.The salecompensatiois not capped.

Other Compensation:

Sales Rep will be paifor all travel and lodginexpenserelateto saleactivities.Auto travel will be reimbursed at the current federal reimbursement rate viii(Currently $0.56cents per mile).

Sales Repwill brequired to maintaicellphonas part of conducting sales business.Sales Rep will be provided an allowance of ix$50per month for cell phone usage.

Client entertainment expenses will be reimbursed as following:

Meals:Reimbursable with receipts.

Special Events:Must be pre-approved. Reimbursable with receipts.

Expensewill be reimbursewith i30 days of beinpresentewith the receiptand completed expense reimbursement form.

 New Sale MRM Commission

Performance Measure:

Signup of a new customer and the margin (Monthly Recurring Margin) earned on the deal over the first three months is tracked here.

Quota:

There is no quota.

Sales Credits:

Sales Commission is paid to the Sales Rep based on MRM(Monthly Recurring Margin) of the following merchant services products:

PaymentXL

MobilePay

GiftCardz

Sales Rep earns commissions on sales where they had a direct responsibility for the sale.

Sales Revenue minus Tax and Shippinchargeare credited to the SaleRep. Sales credit is allocated on the booking of a contract. An advance commission on a 3-month MRM is calculated and provided at the same time. After three months,the actual MRM is assessed and commission is earned against that. The advanced commission is adjusted against the earned commission at the same rate.

 Calculation:

Salescreditsrelated commissions are calculatedat the following rates:

First 3 months of MRM (Monthly Recurring Margin).

Example:

Assuming Sales Rep completes the following sales-

ContractMRMDuration

Contract1$2001 month

Advance = $600

$2501 month

$1001 month

True-up adjustment= -$50

Equipment Incentive

Sales Credits:

Sales Commission is paid to the Sales Rep based on equipment invoicedsuch as:

Terminal

Pinpad

Sales Rep earns commissions on sales where they had a direct responsibility for the sale.

Sales rep can markup the sale. Sales Rep earns commissions only when an invoice to the customer is completely paid.

Calculation:

Sales commissions are paid as a percent of markup.

Commission rate= 90%

Example:

Assuming the followingsale

Invoice1 Pinpad

List price$200

Markup$100

SalePrice$300

Commissions will be calculated as following:

Invoice 1$100$100 X 90%= $90 (Commission)

Residual Commission

Sales Credits:

Sales Commission is paid to the Sales Rep based on long termcontracts :

Sales Rep earns commissions on sales where they had a direct responsibility for the sale.

Sales Rep earnscommissions only when an invoice to the customer iscompletely paid.

Calculation:

Sales commissions are paid as a percent of MRM

Commission rate= 2%

Example:

Assuming the followingmonthy MRM

Invoice 1$1000

Invoice 2$1000

Invoice 3$2000

Commissions will be calculated as following:

$4000$4000X 2%= $80(Commission)

President’s Club

On achievement of 125% of the annual quota for the main sales commission incentive, Sales Rep will join the Presidentclub.President’s club members will be invited to the annual sales meeting trip held in the first quarter of the next year.

Draw

During the first three months of employment with the company, the Sales Rep is provided are cover able draw of$2,500 per month.The draw balance will be recovered as soon as possible from future earnings.

 Cap

There is nocap on any payouts to the SalesRep.

Termination of Employment

On voluntary or involuntary termination of Sales Rep employment with the company, Commissionwill be paid on transactions dateprioto the termination date only. Any amounts oweto thSales Rewill be accordinto employment regulations after witholdintaxeand other dues.

Other Terms

1.Sales Rep agrees to follow all Federal and Local laws while engaged in providing services to the Company during the period of this agreement.

2.Sales Rephall not engagin any otheemployment during thterm of thiagreement. Company reserves the right to require SaleRep to terminate any such other employment at Company’s sole discretion.

3.Sales Rep shall use the most ethical practiceswhileengaging in any sales activity.

4.Sales Rep agreeto protecall confidential material including prospect data,sales data, andclientinformationbelongingtotheCompanyandshalltakeallreasonablecarein making sure that such confidential material is not disbursed to any one outside the company.

5.This entire agreement shall be governed by the laws of the State of_ .

 Company Sales Rep

ByBy

 NameName

DateDate

iAny part of this agreement can be changed or overridden based on your needs

iiThis date will give us information as to when this agreement was written and distinguish it from similar other agreements.

iiiFill out the company name here

ivFill out the payee's full name here 

vEnter the start and end date for the sales commission plan effective period. Most companies use the calendar or fiscal year start and end date for these values.Some companies may not have an end date specified. 

viAlternatively you can remove this section or phrase it such as Base salary is specified in a separate employment agreement.

viiTargeted sales compensation for the full year

viiiSearch for current IRS mileage rate 

ixYou can put any amount or you may completely removeit or change based on your needs

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