Companies often prepare and sign an agreement with sales representatives or agents to sell their goods or products on a commission basis is usually named a commission sales agreement. Sales commission can be described as a specified sum of money paid by a company or business based on a percentage of the sales made by an employee or agent. Sales commission is distinguished from regular payments of wages or salary as mentioned in the commission sales agreement. Generally, employers or companies pay employees or sales agents a sales commission to appreciate the employees to produce more sales and to reward and recognize names of people who perform most productively for the company or business. Presenting sales commission is a proven way to boost up sales volume of the company or business and is also considered an excellent way to compensate sales staff for their excellent services as well as to promote more sales of the product or the service. Signing a commission sales agreement is the best way to fix a percentage of sales commission for hired employees or sales agents.
The commission sales agreement is an agreement entered into between a sales representative and a company. According to the terms and conditions of the agreement, a sales representative will sell goods on behalf of the company or employer to get a mentioned percentage of commission besides his or her salary. For every final sale, a representative will receive a commission that is agreed upon between the parties of the agreement. If you are going to hire a salesperson or representative on a commission basis, then you should sign a commission sales agreement to protect your obligations and rights. A commission sales agreement outlines in a detailed manner the employment terms and compensation so both employer and employee know what to expect in the future as parties of the agreement. A commission sales agreement must contain several key components including the name of parties, contact details, the performance that is expected of the employee, how the employee or sales agent will be compensated, terms & conditions, and the duration of the agreement, etc.
Here is a preview of a Free Printable Commission Sales Agreement Template created using MS Word,
Whether you are about to hire a new sales employee who works on commission or going to accept a great job that includes sales commissions, don’t forget to sign a commission sales agreement because it will protect your rights and duties in the future time as well as to serve as a legal document to settle any future dispute. A well-drafted commission sales agreement is a legal document and helpful for both employer and employee as it outlines the comprehensive details of their relationship to prevent errors and misunderstandings. A commission sales agreement should be formatted carefully along with all necessary details and information about the work or compensation. As a new or fresh person, you may face trouble in constructing a commission sales agreement but don’t worry about the procedure of making it because a lot of handful tools are obtainable on the web to compose effective commission sales agreements just like commission sales agreements templates or commission sales agreement samples.
Here is the download link for this Commission Sales Agreement Template,
