Employment and HRAgreement
Sales commission agreement template
Make a commission plan clear enough to calculate without arguing: what counts as a sale, the rates and accelerators, when commission is earned and paid, clawbacks on refunds, and what happens when someone leaves.
Opens in the Salsox editor with 6 signing fields already placed for Company and Sales representative. Add their emails and send. The free plan sends 3 documents a month.
Who signs
- Company (you)
- Sales representative
Preview
Sales Commission Agreement
This agreement is made on 24 October 2026 between Brightline Software Inc. (the "Company") and Carlos Rivera (the "Representative"). It applies to sales made during 1 January to 31 December 2027 (the "Plan Period").
1. Territory
The Representative is responsible for new business accounts in the US Midwest region.
2. Quota
The Representative's quota for the Plan Period is USD 900,000 in first-year contract value. Only deals in the territory, approved by the Company at its standard terms or discounts it has authorised, count towards it.
3. Commission rates
- 10% of first-year contract value on deals up to quota.
- 15% on first-year contract value above quota.
4. When commission is earned
Commission is earned when the customer has signed the contract and paid the first invoice. Commission is calculated on contract value excluding taxes, shipping, and any one-off fees for services the Company does not count as recurring revenue.
5. Payment
Earned commission is paid monthly, with the payroll at the end of the month after commission is earned, with a statement showing each deal and the calculation.
6. Clawbacks
If a customer cancels within 90 days of commission being paid and the Company refunds the customer, the commission on the refunded amount is deducted from future commission. Deductions from wages are made only where the law allows.
7. Split deals and disputes
Where two representatives contribute to a deal, the sales manager decides the split before the deal closes. The Representative may raise any question about a statement within 30 days; the Company will review it and respond in writing within 15 business days.
8. Leaving the Company
If the Representative's employment ends, commission is paid on deals signed before the last day of employment whose first invoice is paid within 60 days after it. No commission is earned on deals signed after the last day of employment.
9. Changes
The Company may change this plan for future periods with 30 days' written notice. Changes do not affect commission already earned.
10. Governing law
This agreement is governed by the law of the State of Ohio, USA.
Signatures
For the Company: Signature · Company Date: Date · Company Name: Name · Company
Representative: Signature · Sales representative Date: Date · Sales representative Name: Name · Sales representative
These templates are general starting points, not legal advice. Laws differ between countries and states: check that a template suits your situation, or ask a lawyer, before you rely on it.
About the Sales commission agreement template
Commission disputes are almost always about definitions: when is a deal a deal, which number is the rate applied to, and what happens if the customer cancels or the rep leaves. A commission agreement written before the period starts answers those questions while nobody's money depends on the answer.
This template defines the territory, the quota and what counts towards it, the base rate and an accelerator above quota, and the moment commission is earned, here when the customer has signed and paid, not when a contract is merely sent. It sets the payment schedule, a short clawback for customers who cancel and are refunded, how split deals and disputes are handled, and what happens to commission on deals in progress when the rep leaves.
Many places have specific rules on commission for employees, including when unpaid commission must be paid on leaving and whether a written plan is required. Check the law where the rep works, and review the plan each year.
- Signers
- 2
- Signing fields placed
- 6
- Details to fill in
- 13
How to use this template
Open it in Salsox
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Fill in the details
Type your details into each blank, or start from the sample to see how it reads. Save it as your own template to reuse it.
Add signers and send
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Used in
Questions
When is commission earned?
At the point the agreement defines. Here it is when the customer has signed and paid the first invoice, which avoids paying commission on deals that never become revenue.
What is a clawback?
The return of commission already paid on a deal that is cancelled and refunded within a set window. Keep the window short and the rule clear.
Does the rep get commission after leaving?
Under section 8, on deals signed before they left and paid within the stated period. Some laws require payment of earned commission on departure regardless, so check yours.
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