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Commission Only Contract
"I need a Commission Only Contract for a software sales representative who will operate in the Auckland region, with a tiered commission structure starting at 10% for standard sales and increasing to 15% for premium product sales, to commence from March 1, 2025."
1. Parties: Identification of the principal/company and the commission earner, including full legal names and addresses
2. Background: Context of the agreement, nature of the business, and purpose of the commission arrangement
3. Definitions: Key terms used throughout the agreement, including 'Commission', 'Sales', 'Territory', 'Products/Services'
4. Appointment and Status: Clear statement of appointment and confirmation of contractor status (if applicable)
5. Term: Duration of the agreement, including start date and renewal provisions
6. Commission Structure: Detailed explanation of commission rates, calculation methods, and payment terms
7. Payment Terms: Timeline for commission payments, payment methods, and handling of disputes
8. Performance Expectations: Minimum performance requirements, sales targets, and quality standards
9. Obligations of Commission Earner: Key responsibilities, reporting requirements, and conduct expectations
10. Company Obligations: Support, resources, and information to be provided by the company
11. Intellectual Property: Protection of company IP and handling of created materials
12. Confidentiality: Protection of confidential information and trade secrets
13. Termination: Grounds for termination, notice periods, and consequences
14. Post-Termination Obligations: Ongoing obligations and restrictions after contract end
15. General Provisions: Standard clauses including governing law, notices, and entire agreement
1. Territory Rights: Used when the commission earner is assigned a specific geographic territory or market segment
2. Non-Compete Clause: Include when protecting against competition is crucial, subject to reasonableness tests
3. Training Requirements: Include when specific training or certifications are required
4. Expenses: Include when certain business expenses may be reimbursable
5. Insurance Requirements: Used when the commission earner must maintain specific insurance coverage
6. Sub-contractors: Include if the commission earner is permitted to use sub-contractors
7. Customer Ownership: Include when clarification is needed about customer relationship ownership
8. Dispute Resolution: Optional detailed dispute resolution process beyond standard courts
9. Marketing and Branding: Include when the commission earner will represent the company brand
1. Schedule 1: Commission Rates: Detailed breakdown of commission rates, tiers, and any bonus structures
2. Schedule 2: Territory Map: If applicable, detailed description or map of assigned territory
3. Schedule 3: Product/Service List: Comprehensive list of products/services covered by the agreement
4. Schedule 4: Performance Metrics: Detailed KPIs, targets, and measurement criteria
5. Schedule 5: Reporting Templates: Standard forms and templates for required reports
6. Appendix A: Code of Conduct: Company policies and expected standards of behavior
7. Appendix B: Expense Policy: If applicable, rules and procedures for expense claims
Authors
Real Estate
Insurance
Financial Services
Retail
Wholesale Distribution
Technology Sales
Automotive Sales
Telecommunications
Professional Services
Manufacturing
Direct Sales
Marketing Services
Sales
Business Development
Channel Partners
Distribution
Commercial
Revenue
Partner Management
Account Management
Direct Sales
Field Sales
Inside Sales
Sales Representative
Business Development Manager
Account Executive
Real Estate Agent
Insurance Broker
Sales Agent
Territory Manager
Distribution Partner
Commercial Agent
Sales Consultant
Independent Sales Representative
Commission Agent
Business Development Representative
Channel Partner
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