Founding members lock in 20% off, forever.50 of 50 founding spots leftClaim 20% off forever →
Evenseal
PricingAre e-signatures legal?Sign inGet started
Evenseal

Unlimited document signing for a flat monthly price.

Product

  • Sign a PDF free
  • Pricing
  • Are e-signatures legal?
  • Contact

Legal

  • Terms of Service
  • Cancellation & refunds
  • Privacy Policy
  • Cookie Notice

Trust

  • Security
  • Verify a document
  • Subprocessors

© 2026 Evenseal. All rights reserved. Evenseal provides electronic-signature software, not legal advice.

Commission Agreement Template

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.

Download the Commission Agreement

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.

Download PDF

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 is a template, not legal advice

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.

What a commission agreement needs

  • 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.

Common mistakes to avoid

  • Leaving "qualifying sale" undefined, so the rep and the company each assume a different moment is the one that counts — usually discovered during the first disputed deal.
  • No clawback clause, which leaves the company unable to recover commission it already paid on a sale that was later refunded or cancelled.
  • A clawback with no time limit, so commission can be reversed years after the sale — reasonable companies cap this, and a capped clause is easier to enforce.
  • No tail period, so nobody has addressed what happens to a deal the rep was actively closing when they resigned or were let go.
  • Treating the commission structure as fixed forever. A commission agreement can be updated for future sales going forward — just not for sales that already qualified under the old terms.

Turn this into a signed document

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.

Create a free accountSee pricing

Free plan: sign and send 3 documents a month, no card required. Unlimited documents and recipients start at $19/month.

Frequently asked questions

How is a commission agreement different from an employment contract?+
An employment contract covers the employment relationship broadly — role, duties, term, termination, benefits — usually with pay stated as a single salary line. A commission agreement exists because that single line isn't enough: it defines the rate or formula, when a sale actually qualifies, how draws and clawbacks work, and what happens to commission after termination. Many sales roles use both — an employment contract for the relationship, and a commission agreement (or plan) governing how the sales pay itself is calculated.
Can a company claw back commission it already paid?+
Only if the agreement says so. Without a clawback (chargeback) clause, commission that was correctly paid under the terms in effect at the time is generally the rep's to keep, even if the underlying sale is later refunded or cancelled. That's why the clause needs to state explicitly which events trigger a clawback, how it's recovered, and a time limit after which the company can no longer claw it back.
Is a draw against commission the same as a salary?+
No. A draw is an advance against commission the rep hasn't earned yet — the company pays it out on a schedule, then deducts it from commission as the rep earns it. A "recoverable" draw can leave the rep owing money back if they never earn enough commission to cover it; a "non-recoverable" draw is closer to a guaranteed minimum. The agreement should say which kind applies and what happens to any unrecovered balance when the relationship ends.
Does a company have to keep paying commission after someone quits or is fired?+
Commission already earned on a completed qualifying sale is normally still owed on the regular payment schedule, regardless of why the person left. Commission on a deal that hadn't yet become a qualifying sale is a separate question — some agreements include a short "tail" period so a deal the rep was actively closing still pays out if it closes shortly after they leave, sometimes forfeited if the termination was for cause. Whether any of this applies depends entirely on what the agreement says, which is why the termination clause needs to address it directly rather than staying silent.
Is a commission agreement legally binding when signed electronically?+
Yes, in most countries. A typed or drawn electronic signature is legally recognized for ordinary business agreements under laws like the US ESIGN Act and UETA, the EU and UK's eIDAS rules, and equivalents elsewhere — a commission agreement is a standard contract, not a document requiring notarization or a qualified signature. Are electronic signatures legally binding?.

Related

  • Independent Contractor Agreement Template
  • Consulting Services Agreement Template
  • How to eSign a Contract for Free
  • How to Request a Signature From Someone Else, Free
  • Are electronic signatures legally binding?
  • Pricing