Sample Reseller Sales Rep Commission Agreement Template
Industry: Reseller
CellarStone, Inc.
Producers of QCommission
To properly calculate and pay for this commission plan, please contact
Note: this document is intended purely as a sample plan. It is not intended to provide accounting or legal advice of any form. Please consult your accountant and lawyer prior to creating your own version of the compensation plan.
iReseller Sales Rep Compensation Agreement
Revision Date:ii
This document describes the agreement between iii______
(“Company”) andiv (“Sales Rep”) regardingterms related to compensation.
CompanyandSales Rep enterintothis agreementwherebySales Repprovidessalesservicesto the Companyin return for compensation specified inthis agreement.
Duration:
This agreement covers the period starting from v and ends on
.
All commissionswillbecalculatedandpaidonceeverymonth, forthepreceedingmonth. Commissionswillbecalculatedandpaidoutaspartofthenextpayrollcycle,followingthemonth for which commissions are calculated.
Base Pay:
viSales Rep isdue a basesalary of vii ,payable everyviii______.
Sales Compensation:
Targetedsalescompensationforthefullyearis ix______.Thesalescompensationis not capped.
Other Compensation:
SalesRepwillbepaidforalltravelandlodgingexpensesrelatedtosalesactivities.Autotravel will be reimbursed at the current federal reimbursement rate (Currently 0.37 cents per mile).
SalesRepswillberequiredtomaintainacellphoneaspartofconductingsalesbusiness.Sales Repwill be provided an allowance of $50 per month for cell phone usage.
Client entertainment expenses will be reimbursed as following:
Meals:Reimbursable with receipts
Special Events:Must be pre-approved. Reimbursable with receipts.
Expenseswillbereimbursedwithin30daysofbeingpresentedwiththereceiptsandacompleted expense reimbursement form.
xProduct Sales Commission
Quota:
SalesRephasaquotarequirementofxi_inProductSalesRevenueforthefull year.
Sales Credits:
Sales Commission is paid to the Sales Rep based on the sale of the following products:
xiiProduct 1
Product 2
Product 3
Sales Rep earnscommissions only when an invoice to the customer iscompletely paid.xiii
SalesRevenueminusTaxandShippingchargesarecreditedtotheSalesRepand comparedto the Quota.
Calculation:
Salescreditsareaccumulatedandcomparedagainsttheannualquota.Basedonthepercentage ofquotaachievementa differentsalescommissionpercentisappliedagainstthecurrentsales revenue andcommission amt is calculated.
CommissionTiers
Quota Achievement / CommissionRate0% to 79.99% / 3%
80% to 99.99% / 5%
100% to 149.99% / 7%
150% and above / 10%
Example:
Assuming Sales Rep has agoal of $100,000 and in the first monthcompletes the following sales- Invoice1 $60,000
Invoice2$30,000
Commissions will be calculated as following:
Invoice 1 / $60,000 at 3% / = $1,800 / (Is in the firsttier)Invoice 2 / $30,000 / (Crosses two tiers)
$20,000 at 3% = $600 (this portion is in the first tier)
$10,000 at 5% = $500 (this portion is in the second tier)
Total Commission: ($2900)
xivServiceGrossProfitCommission
Quota:
Sales Rep does not have aquota for this Commission.
Sales Credits:
Sales Commission is paid to the Sales Rep based on the sale of the following services:
Service 1
Service 2
Sales Rep earnscommissions only when an invoice to the customer iscompletely paid.xv
GrossProfitiscalculatedbyusingastandardcostrateofxvi$55perhourforservicesrendered and subtracting that cost from the service revenue. Gross Profit is credited to theSales Rep.
Calculation:
Sales creditsare accumulated and paid at a standard10% of Gross Profit.
Example:
Assuming Sales Rep completes the followingsales inthe first month- Invoice1$8,000 100 Hrs
Commissions will be calculated as following:
Invoice 1$8,000($8,000 – ($55 x 100))= $2,500(Gross Profit)
$2,500 x 10%= $250 (Commission)
QuarterlyNew Sales Bonus
Quota:
Sales Rephasaquotarequirementofxvii of newsalesrevenueforthe quarter.
Sales Credits:
Sales revenue can be product orservicesales.Saleshave to be made to brand new customers. Sales Rep earnscommissions only when an invoice to the customer iscompletely paid.xviii
SalesRevenueminusTaxandShippingchargesarecreditedtotheSalesRepandcomparedto the Quota.
Calculation:
Sales creditsareaccumulatedandcomparedagainstthequarterlyquota. If thequotais exceeded, Sales Rep gets a quarterly bonus of $5,000.
Example:
Assuming Sales Rep has aquarterly goal of $50,000.
If Sales Repmakes $45,000 in Quarterly New Sales, then SalesRep does not get any bonus.
If Sales Repmakes $55,000 in Quarterly New Sales, then SalesRep gets the bonus of $5,000.
President’s Club
On achievement of 125% of the annualquota for themain salescommission incentive, Sales Rep willjointhePresident’sclub.President’sclubmemberswillbeinvitedtotheannualsalesmeeting trip held in the first quarter of the next year.
Draw
During thefirstthreemonthsofemploymentwiththecompany, theSalesRepisprovideda recoverabledrawof$2,500permonth.Thedrawbalancewillberecoveredassoonaspossible from future earnings.
Cap
There is nocap on any payouts to the SalesRep.
Termination of Employment
On voluntary or involuntary termination of Sales Rep employment with the Company, commissionswillbepaidontransactionsdatedpriortotheterminationdateonly.Anyamounts owedtotheSalesRepwillbeaccordingtoemploymentregulationsafterwithholdingtaxesand other dues.
Other Terms
1.Sales Rep agrees to follow all Federal and Local laws while engaged in providing services to the Company during the period of this agreement.
2.SalesRepshallnotengageinanyotheremploymentduringthetermofthisagreement. Company reserves the right to require Sales Rep to terminate any such other employment at Company’s sole discretion.
3.Sales Rep shall use the most ethical practiceswhileengaging in any sales activity.
4.SalesRepagreestoprotectallconfidentialmaterialincludingprospectdata,salesdata, andclientinformationbelongingtotheCompanyandshalltakeallreasonablecarein making sure that suchconfidentialmaterialisnotdisbursedtoanyone outside the company.
5.This entire agreement shallbe governedby the laws ofthe State of .
Company Sales Rep
__
By By
__
Name Name
__
Date Date
i Any partofthis document can bechanged or overridden based onyour needs.
ii Thisdatewill giveusinformationas to whenthis agreement was written and distinguish it fromsimilar otheragreements.
iii Fill out the company name here.
iv Fill out the sales person’s full name here.
v Enter thestartand end datefor the sales commissionplaneffectiveperiod. Most companiesusethe calendarorfiscal year start and enddatesforthesevalues.Some companiesmay not have anenddate specified.
vi Alternatively youcan remove this section orphraseit such as “BaseSalary is specifiedinaseparate employmentagreement.
vii Amount of baseevery payableperiod.
viii Weekly,Bi-weekly,Twice-monthly,Monthly,etc
ix If there is a targetedcompensation for the full year, it can be entered here.Alternatively, this whole sectioncanberemoved.
x This incentiveencourageshigherlevels of product sales,by paying highercommissions when the quota is exceeded.
xi Enter quota amount here. Itcould besetuptobeamonthly or quarterly quota. It is also possibleto not haveaquotaatall.
xii Replacewithappropriate productsorproduct families. Alternatively, replace products with customers or types ofbusiness.
xiii Alternatively commissioncan be due oninvoicing orshipping of goodsor otherevents.
xiv This incentivediscouragesdiscounting, by payingon GrossProfit. It alsokeepsthe focusoftheSales
Repon product sales,wherehigher commissionsare possible.
xv Alternatively commissioncan be due oninvoicing orshipping of goodsor otherevents.
xvi Cost canbeastandard rate such asthis,orcanbederiveddirectly fromproduct cost or canbeevaluated frompurchase orders raisedtosupplying vendors.
xvii Enter quota amount here. Itcould besetuptobeamonthly or quarterly quota. It is also possibleto not haveaquotaatall.
xviiiAlternatively commissioncan be due oninvoicing orshipping of goodsor other events.
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Copyright, CellarStone, Inc.