A commission agreement sets out how a salesperson actually gets paid — a rate or formula, the exact point a sale "qualifies" for commission, and what happens if the customer cancels or the salesperson leaves before a deal closes. It's built around sales pay mechanics that a salaried employment contract simply has no clauses for. Download the ready-to-fill template below, or read the full clause checklist first.
A complete, ready-to-fill PDF — 15 clauses, blanks for every detail, and a signature block for both parties. Free, no email, no account. Read it and adapt it before you use it; the cover page explains what it can and cannot do for you.
Need the other party to sign it too? Send it for signature with a full audit trail and a tamper-evident seal on the finished file — they never need an account. See pricing.
This document is a general-purpose template provided for information only. It is not legal advice, it does not create a lawyer–client relationship, and nobody has reviewed it against your situation.
Laws differ by country, state and province, and they change. A clause that is standard in one place can be unenforceable — or illegal — in another. Terms that are ordinary between two businesses can be void in a consumer or employment context.
Read every clause before you use it, fill in every blank, and delete anything that does not apply. For anything high-value, unusual, or that you could not afford to lose a dispute over, have a qualified lawyer in your jurisdiction review it before it is signed.
Commission rate or formula
Percentage of sale price, a tiered rate that steps up at volume thresholds, or a flat amount per unit — spelled out as a number, not "a fair commission."
Whether commission is the sole pay or on top of a base
Commission-only, or commission plus a base salary, hourly wage, or retainer. This changes how the rest of the agreement is read.
Definition of a "qualifying sale"
The exact moment a sale counts — signed order, company acceptance, the customer's first payment, or payment in full. This single definition prevents most rep-vs-company disputes.
Commission period and payment timing
How often commission is calculated (monthly, quarterly) and when it's actually paid out, plus a window for the rep to dispute a statement.
Draw against commission, if any
Whether the rep gets an advance against future commission, and — critically — whether an unrecovered draw balance is forgiven or must be repaid when the relationship ends.
Chargebacks and clawbacks
What happens to commission already paid when the customer cancels, returns the product, or never pays — and a time limit on how far back the company can claw it back.
Excluded and house accounts
Sales that don't earn commission: house accounts, unauthorized discounts, self-dealing, and how split commissions are divided when more than one rep touches a deal.
Commissions after termination
Whether a deal the rep was working when they left still pays out if it closes shortly after (a "tail" period), and whether termination for cause forfeits it.
Confidentiality of pipeline and pricing data
Customer lists, pricing, and pipeline data are exactly what a departing sales rep is best positioned to take with them.
Governing law and signatures
Which jurisdiction's law applies, and both parties' signatures — until signed, none of the terms above are binding.
Fill in the blanks above — the commission rate, qualifying-sale trigger, and the rest — then send it to the sales representative for signature. They sign online and never need an account, and the finished file comes back sealed with an audit certificate showing who signed, when, and from where.
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