In any business entity or organization, people are employed and paid on different basis. Some people are permanent employees of the entity and are paid on monthly basis. Some people are paid on hourly basis and some the people are hired as commission agents and they are paid commissions. In this particular article, we will just discuss about the commission agreement and commission agreement templates. If you are employed as a commission agent of an entity, then it is very important that you should have read, understood and signed your official commission agreement. For both the employees and employers, the option to create or use a specific commission agreement template is always available.
Just like any other employment agreement, a commission agreement template also contains the terms of the employment, commission rates and other important details. It also states the rights and responsibilities of both the employee and the employer. Mostly, a commission agreement is prepared by the employer but if the employer has not prepared one, then you can also create a commission agreement yourself. Make sure to check out these handy commission agreement templates that are provided to you below. You can also download and edit these commission agreement templates for free.
Real Estate Commission Agreement Template
Regular Commission Agreement Template
Simple Tenant's Commission Agreement Template
Independent Contractor's Commission Agreement
Agency's Commission Agreement Template
Producer's Commission Agreement Template
Sample Commission Agreement Template
Specific Commission Agreement Template
Group Brokerage Agreement Template
Realtors Commission Agreement Template
Artwork Commission Agreement Template
Balnk Format Commission Agreement Template
Referral Commission Agreement Template
Sales Rep Commission Agreement Template
Important Details to include in a Commission Agreement
As mentioned earlier, it is very important for both the employers and employees to prepare an official sales commission agreement. In many countries, it is a requirement of law that if you employ a person on commission, you should have a written commission agreement with that employee.
A commission agreement should clearly explain and mention the rate of commission, how it will be calculated, awarded and paid to the employee. A signed copy of such a sales agreement must be retained by both the employer and employee.
As an employee or employer, make sure that a commission agreement clearly defines the terms ‘sales’ and ‘profits’. It is important because the commission to be paid is mostly some percentage of either sales or profit e.g, 15% of sales or 25% of profit etc. The commission agreement should clearly state that when the commission will be earned i.e, on placement of order, on delivery of goods or on the payment by customers etc. It should also explain how the returns, refunds or cancelled orders will impact the calculation of the commission.
If the employer gives bonuses to its employees, then the term ‘bonus’ shall also be defined clearly in a commission agreement. The reason is that a commission is a fixed percentage of sales or profit, while the bonus is also awarded as a fixed percentage of sales or profit, so it is very important to keep both of them separate. Therefore, in order to avoid any disputes and errors in computation of commission, it is important that a sales commission agreement should separately explain the bonus plan and commission plan.
Formal Commission Agreement Templates
Typical Commission Agreement Template
Special Commission Agreement Template
Broker's Commission Agreement Template
Buyer Commission Agreement Template
Professional Commission Agreement Template
Company's Commission Agreement Template
Online Course Commission Agreement
Sales Commission Agreement Template
Property Dealer's Commission Agreement Template
Blank Format of Commission Agreement Template
Commission Sharing Agreement Template
Detailed Commission Agreement Template
Lease Dealer's Commission Agreement Template
Sales Manager's Commission Agreement Template
Types of Commission Agreements
A commission agreement is of many different types. Some of these types are as follows:
- Artist’s Commission Agreement.
- Agent’s Commission Agreement.
- Business Investments.
- Conditional Sales.
- Sales Commission Agreement.
- Independent Contractors.
- Financial Support.
- Corporate Duties.
- Online Commission.
- Commission Agreement for Agency.
- Real Estate Commission Agreement.
- Sales Reps Commission Agreement.
- Trading Commissions Agreement.