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Sales Commission Agreement

Agreement defining the commission structure for a sales employee or representative, including rates, quotas, and payment timing.

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Instructions

Define the commission structure clearly: base salary plus commission, draw against commission, or commission-only. State the commission rate(s) and how they apply to different products or deal sizes. Define when a commission is earned (at booking, invoicing, or payment). Address chargebacks for returns or cancellations. Specify the payment schedule. Address what happens to pending commissions upon termination. Some states have specific commission protection laws.