Free Commission Agreement Letter Template Customizable
There are various ways people may get paid. Most people get paid on a monthly basis but some others get paid on an hourly basis. Even more, some others get paid on commission. If you get paid on commission, you will need to sign a commission agreement letter template.
What Is a Commission Agreement Letter?
This is a kind of agreement that contains the terms of employment & your compensation. It is very important. Therefore, both employer & employee have clear expectations. It is very important for you to know when to use a commission agreement letter.
First, you will need to use it when you hire a new employee who will be paid in whole or part on commission. It clarifies the terms of employment, containing the employer and employee’s expectation and & rights. It is also needed when someone hires you & you will be paid on commission.
Types of Commission Agreement Templates
A commission contract letter is divided into many types based on the uses. For your information, a commission agreement may be used for:
- Non-disclosure commission
- Independent contractors
- Financial support
- Corporate duties
- Conditional sales
- Commission lists
- Business investments
- Agent commission
You may create a commission contract letter template for the following reasons:
- Trading commissions
- Sales representatives
- Stock purchases
- Share purchases
- Sales commission policies
- Sales agencies
- Real estate partnerships
- Online commission
Parts of a Commission Agreement Template
A commission agreement template should contain the following clauses:
- Definitions & interpretations
- The introducer’s appointment
- The potential clients’ introduction
- Obligations of the company
- Payments & fees
- Relationships of the involved parties
- Non-competition & confidentiality
- Non-circumvention & termination
- The agreement’s nature
- Service & notices
- Schedule of commission
- Product schedule
How to Structure a Commission Agreement Letter
If you want to write this kind of agreement letter, you will have to know about its structure. Below are a few ideas for writing the structure of such a letter:
- Basic salary plus commission
It is a good idea to add a basic salary. It ensures the employees that they have something to look forward to. In addition, there will be the incentive to get a bonus if they work harder. Of course, it keeps your employees productive & motivated.
- Only commission
Sometimes, you can make an agreement when the employees only receive a commission. It ensures that your employees are say motivated to work hard.
- Crapped commission
Here, you put a cap on the amount of commission that can be earned by your employees. This one applies to certain businesses.
- Tiered commission
This can be used if you have highly-driven employees. They are very motivated to achieve their sales quotas & goals. You can also notice that they get better at their jobs.
- Territory volume
If the sales people work with the same client in the same area, you should make an agreement structure protecting & benefiting them. This one lets the team widen their network. So, you can pay them based on territory-wide sales.
You can use our commission agreement letter template to ease your task. Some of the sample templates available here include a sales commission agreement, an artwork commission agreement, a leasing commission agreement, etc. Make sure that you find your preferred template and edit it.