Product Info - Free Commission Agreements - Value Added Industry : Value Added Reseller Sales Rep

 

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Sample Value Added Reseller Sales Rep Compensation Plan Template

Value Added Reseller Sales Rep Compensation Agreement

Revision Date:___________

 

This document describes the agreement between iii______________ _

(“Company”) and iv(“Sales Rep”) regardingtermsrelated to compensation.

CompanyandSales Rep enterintothis agreementwherebySales Repprovidessalesservicesto the Companyin return for compensation specified inthis agreement.

 

Duration:

This agreement covers the period starting from v and ends on

.

 All commissionswillbecalculatedandpaidonceeverymonth, fortheprecedingmonth. Commissionswillbecalculatedandpaidoutaspartofthenextpayrollcycle,followingthemonth for which commissions are calculated.

 

Base Pay:

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

 Sales Compensation:

Targetedsalescompensationforthefullyearis vii________.Thesalescompensationis not capped.

 

 Other Compensation:

SalesRepwillbepaidforalltravelandlodgingexpensesrelatedtosalesactivities.Autotravel will be reimbursed at the current federal reimbursement rate viii (Currently $0.56cents per mile).

SalesRepswillberequiredtomaintainacellphoneaspartofconductingsalesbusiness.Sales Repwill 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.

Expenseswillbereimbursedwithin30daysofbeingpresentedwiththereceiptsandacompleted 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.

SalesRevenueminusTaxandShippingchargesarecreditedtotheSalesRep.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 assessedand 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$200 1 month

Advance = $600

$250 1 month

 

$100 1 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 earnscommissions only when an invoice to the customer iscompletely 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 annualquota for themain salescommission incentive, Sales Rep willjointhePresidentsclub.President’sclubmemberswillbeinvitedtotheannualsalesmeeting trip held in the first quarter of the next year.

 

Draw

During thefirstthreemonthsofemploymentwiththecompany, theSalesRepisprovidedarecoverabledrawof$2,500permonth.Thedrawbalancewillberecoveredassoonaspossible from future earnings.

 

Cap

There is nocap on any payouts to the SalesRep.

 

Termination of Employment

On voluntary or involuntary termination ofSales Repemploymentwith thecompany, Commissionswillbepaidontransactionsdatedpriortotheterminationdateonly.Anyamounts owedtotheSalesRepwillbeaccordingtoemploymentregulationsafterwithholdingtaxesand 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.SalesRepshallnotengageinanyotheremploymentduringthetermofthisagreement. Companyreserves the right to require SalesRep toterminateany such other employment at Company’s sole discretion.

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

4.SalesRepagreestoprotectallconfidentialmaterialincludingprospectdata,salesdata, andclientinformationbelongingtotheCompanyandshalltakeallreasonablecarein making surethat suchconfidentialmaterialisnotdisbursedtoanyoneoutside thecompany.

5.This entire agreement shallbe governedby the laws ofthe State of _ .

 

 

Company      Sales Rep

 

 By                By

 Name         Name

 

 

Date             Date

 

 

 

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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