When you’re hiring a commission agent, you need to have a solid agreement in place to outline terms like commission rates, expectations, and responsibilities. This not only protects both you and the agent but also ensures that everyone is on the same page about what is expected. Here’s a sample agreement for commission agents to get you started.
Introduction
This agreement (herein called the “Agreement”) sets forth the terms and conditions between [Company Name] (herein called the “Principal”) and [Agent Name] (herein called the “Agent”) for commission-based services. The Agent is responsible for selling and promoting Principal’s products or services and will be entitled to a commission for each successful sale.
Scope of Services
The Agent agrees to promote and sell Principal’s products or services within the designated territory as agreed to by both parties. The Agent will actively seek out potential buyers and endeavours to establish new business relationships, including advertising and marketing.
Commission
The Agent will be entitled to a commission of [Commission Percentage] of the gross sales made by the Agent for Principal’s products or services within the designated territory. The commission rate will be agreed upon in advance, and the commission will be paid by the Principal to the Agent on a [Commission Payment Schedule] basis.
Duties
The Agent agrees to follow all the policies and procedures set forth by the Principal regarding the promotion and sale of Principal’s products or services. The Agent will also maintain a log of all activities related to the promotion and sale of those products or services, including sales data, types of products sold, customer feedback, and other relevant information.
Termination
Either party may terminate this agreement with [Termination Notice Period] days prior written notice. In the event of the Agent’s material breach of this Agreement, the Principal may terminate the agreement immediately.
Confidential Information
The Agent agrees to maintain the confidentiality of all proprietary information relating to the Principal’s products or services, including customer lists, sales data, pricing, and other relevant information.
Indemnification
The Agent agrees to indemnify the Principal and hold it harmless from all claims, damages, and expenses (including reasonable attorney fees) arising from the Agent’s actions or omissions under this agreement.
Governing Law
This Agreement is subject to [Governing Law] and is binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns.
Conclusion
A commission-based agreement is a practical and productive way to grow your business, but agreement between the parties is necessary to avoid issues. Setting the terms and conditions in writing is fundamental in ensuring both parties are in agreement and that everyone is clear on their roles and responsibilities. This sample agreement can be modified to suit both the desires of the principal and the expectations of the agent.