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Contractor Sales Commission Agreement
"I need a Contractor Sales Commission Agreement for my software company that includes a tiered commission structure (5-15% based on sales volume) and covers both software license sales and implementation services, with a special focus on protecting our intellectual property and customer data."
1. Parties: Identifies the contracting parties - the company and the independent sales contractor
2. Background: Outlines the context of the agreement, including the company's business and the contractor's intended sales role
3. Definitions: Defines key terms used throughout the agreement, including 'Commission', 'Sales', 'Territory', and 'Products'
4. Appointment and Status: Establishes the contractor's appointment as an independent sales contractor and confirms their self-employed status
5. Term and Termination: Specifies the duration of the agreement and circumstances for termination by either party
6. Contractor Obligations: Details the contractor's responsibilities, sales targets, and performance standards
7. Company Obligations: Outlines the company's responsibilities, including support, training, and information provision
8. Commission Structure: Defines how commission is calculated, earned, and paid
9. Payment Terms: Specifies payment frequency, method, and handling of expenses
10. Intellectual Property: Addresses usage of company trademarks, logos, and promotional materials
11. Confidentiality: Protects company's confidential information and trade secrets
12. Non-Competition and Non-Solicitation: Restricts contractor's competitive activities during and after the agreement
13. Dispute Resolution: Establishes procedures for resolving disagreements
14. General Provisions: Includes standard clauses like governing law, entire agreement, and amendments
1. Territory Rights: Defines exclusive or non-exclusive sales territories when geographical restrictions apply
2. Minimum Performance Requirements: Specifies minimum sales targets when the agreement includes performance-based continuation
3. Training Requirements: Details mandatory training programs when specific product knowledge or certification is required
4. Marketing Support: Outlines marketing assistance and materials when the company provides significant marketing support
5. Insurance Requirements: Specifies required insurance coverage when the contractor needs professional liability or other insurance
6. Subcontracting: Addresses the ability to subcontract when permitted by the company
7. Client Ownership: Determines ownership of client relationships when relevant to the sales structure
8. Post-Termination Commission: Handles trailing commissions when payments may continue after agreement termination
1. Schedule 1 - Commission Rates: Detailed breakdown of commission percentages for different products or services
2. Schedule 2 - Product List: Comprehensive list of products or services the contractor is authorized to sell
3. Schedule 3 - Territory Map: Geographical definition of sales territory if applicable
4. Schedule 4 - Sales Targets: Specific sales targets and any associated bonus structures
5. Schedule 5 - Reporting Templates: Standard forms for sales reporting and commission calculations
6. Appendix A - Code of Conduct: Company's sales practices and ethical guidelines
7. Appendix B - Expense Policy: Guidelines for claiming and reimbursing approved expenses
Authors
Retail
Real Estate
Insurance
Financial Services
Technology
Manufacturing
Pharmaceutical
Telecommunications
Professional Services
Consumer Goods
Industrial Equipment
Software and SaaS
Medical Devices
Construction Materials
Automotive
Sales
Legal
Human Resources
Finance
Operations
Compliance
Commercial
Business Development
Contract Administration
Revenue Operations
Sales Director
Commercial Manager
Business Development Manager
Sales Operations Manager
Contract Manager
Legal Counsel
HR Director
Chief Revenue Officer
Sales Representative
Channel Manager
Regional Sales Manager
Commission Administrator
Compliance Officer
Chief Financial Officer
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