[i]Merchant Services Sales Rep Compensation Agreement
Revision Date: [ii] ___________________
This document describes the agreement between [iii] ______________ _
(“Company”) and [iv] (“Sales Rep”) regarding terms related to compensation.
Company and Sales Rep enter into this agreement whereby Sales Rep provides sales services to the Company in return for compensation specified in this agreement.
Duration:
This agreement covers the period starting from [v] and ends on
.
All commissions will be calculated and paid once every month, for the preceding month. Commissions will be calculated and paid out as part of the next payroll cycle, following the month for which commissions are calculated.
Base Pay:
[vi]Sales Rep's base salary (if any) is specified as part of a separate agreement.
Sales Compensation:
Targeted sales compensation for the full year is [vii] ________. The sales compensation is not capped.
Other Compensation:
Sales Rep will be paid for all travel and lodging expenses related to sales activities. Auto travel will be reimbursed at the current federal reimbursement rate [viii](Currently $0.56 cents per mile).
Sales Reps will be required to maintain a cell phone as part of conducting sales business. Sales Rep will be provided an allowance of [ix]$50 per month for cell phone usage.
Client entertainment expenses will be reimbursed as following:
Meals: Reimbursable with receipts.
Special Events: Must be pre-approved. Reimbursable with receipts.
Expenses will be reimbursed within 30 days of being presented with the receipts and a completed expense reimbursement form.
New Sale MRM Commission
Performance Measure:
Signup of a new customer and the margin (Monthly Recurring Margin) earned on the deal over the first three months is tracked here.
Quota:
There is no quota.
Sales Credits:
Sales Commission is paid to the Sales Rep based on MRM (Monthly Recurring Margin) of the following merchant services products:
PaymentXL
MobilePay
GiftCardz
Sales Rep earns commissions on sales where they had a direct responsibility for the sale.
Sales Revenue minus Tax and Shipping charges are credited to the Sales Rep. Sales credit is allocated on the booking of a contract. An advance commission on a 3-month MRM is calculated and provided at the same time. After three months, the actual MRM is assessed and commission is earned against that. The advanced commission is adjusted against the earned commission at the same rate.
Calculation:
Sales credits related commissions are calculated at the following rates:
First 3 months of MRM (Monthly Recurring Margin).
Example:
Assuming Sales Rep completes the following sales-
Contract MRM Duration
Contract1 $200 1 month
Advance = $600
$250 1 month
$100 1 month
True-up adjustment = -$50
Equipment Incentive
Sales Credits:
Sales Commission is paid to the Sales Rep based on equipment invoiced such as:
Terminal
Pinpad
Sales Rep earns commissions on sales where they had a direct responsibility for the sale.
Sales rep can markup the sale. Sales Rep earns commissions only when an invoice to the customer is completely paid.
Calculation:
Sales commissions are paid as a percent of markup.
Commission rate = 90%
Example:
Assuming the following sale –
Invoice1 Pinpad
List price $200
Markup $100
Sale Price $300
Commissions will be calculated as following:
Invoice 1 $100 $100 X 90% = $90 (Commission)
Residual Commission
Sales Credits:
Sales Commission is paid to the Sales Rep based on long term contracts :
Sales Rep earns commissions on sales where they had a direct responsibility for the sale.
Sales Rep earns commissions only when an invoice to the customer is completely paid.
Calculation:
Sales commissions are paid as a percent of MRM
Commission rate = 2%
Example:
Assuming the following monthy MRM –
Invoice 1 $1000
Invoice 2 $1000
Invoice 3 $2000
Commissions will be calculated as following:
$4000 $4000 X 2% = $80 (Commission)
President’s Club
On achievement of 125% of the annual quota for the main sales commission incentive, Sales Rep will join the President’s club. President’s club members will be invited to the annual sales meeting trip held in the first quarter of the next year.
Draw
During the first three months of employment with the company, the Sales Rep is provided a recoverable draw of $2,500 per month. The draw balance will be recovered as soon as possible from future earnings.
Cap
There is no cap on any payouts to the Sales Rep.
Termination of Employment
On voluntary or involuntary termination of Sales Rep employment with the company, Commissions will be paid on transactions dated prior to the termination date only. Any amounts owed to the Sales Rep will be according to employment regulations after withholding taxes and other dues.
Other Terms
- Sales Rep agrees to follow all Federal and Local laws while engaged in providing services to the Company during the period of this agreement.
- Sales Rep shall not engage in any other employment during the term of this agreement. Company reserves the right to require Sales Rep to terminate any such other employment at Company’s sole discretion.
- Sales Rep shall use the most ethical practices while engaging in any sales activity.
- Sales Rep agrees to protect all confidential material including prospect data, sales data, and client information belonging to the Company and shall take all reasonable care in making sure that such confidential material is not disbursed to anyone outside the company.
- This entire agreement shall be governed by the laws of the State of _ .
Company |
Payee |
| By _______________________ | By_______________________ |
| Name _______________________ | Name_______________________ |
| Date _______________________ | Date_______________________ |
- Any part of this agreement can be changed or overridden based on your needs
- This date will give us information as to when this agreement was written and distinguish it from similar other agreements.
- Fill out the company name here
- Fill out the payee's full name here
- Enter the start and end date for the sales commission plan effective period. Most companies use the calendar or fiscal year start and end date for these values.Some companies may not have an end date specified.
- Alternatively you can remove this section or phrase it such as Base salary is specified in a separate employment agreement.
- Targeted sales compensation for the full year
- Search for current IRS mileage rate
