Sample Real Estate Referral Agency Compensation Plan Template
iReal Estate Referral Agency Compensation Agreement
Revision Date: ii____________
This document describes the sales compensation agreement between iii_____________________________ (“Company”) and iv_________________________________ (“Payee”) regarding terms related to compensation.
Company and Payee enter into this agreement whereby Payee provides services to the Company and customers of company, in return for compensation specified in this agreement.
Duration:
This agreement covers the period starting from v__________ and ends on _______________.
Commissions will be calculated and paid once every week, for the preceding week. Commissions will be calculated and paid out as part of the next payroll cycle, following the month for which commissions are calculated.
Services:
The primary service rendered by this payee is referring property sales and leases to the company.
Sales Compensation:
Targeted variable compensation for the full year is vi________________.
Other Compensation:
Payee is not due any other compensation as part of this agreement.
Lease Referral Commission
This incentive pays commissions on transactions referred by payee. This commission is paid every week.
Credits:
Any deals that are due to the referred by the Payee are eligible for this commission. Commissionable transactions are closed deals of commercial and residential properties. Payee gets credit for the sales amount when the deal is closed.
CellarStone, Inc. Copyright www.qcommission.com Page 3 of 5
Calculation:
Calculation is based on the following data available from closed deal. Sales Amount - This is the total sales price of the property.
Lease fees - This is the lease fees collected for the lease of a unit.
Commission rate for the sale is negotiated on a deal-by-deal basis with the seller. This commission is the revenue to the company. This commission revenue is then split between the company and the payee.
Split Rate % - 10%
Example:
Lease: #1
Lease Fees: $2,400
Payee role: Referrer Only
Split Rate: 10%
Commission Amt: $240 ($2,400 x 10%)
Other Terms
1. Payee agrees to follow all Federal and Local laws while engaged in providing services to the Company during the period of this agreement.
2. This agreement in no way allows the Payee to represent themselves as agents of the Company.
3. In case of any disagreement regarding sales credit, splits and commission calculations, the payee agrees that the company has the sole authority to decide the calculations and results.
4. Any transaction entered into by the Payee during the period specified in this agreement is considered to be made on behalf of the Company and is the property of the Company.
5. Payee agrees to protect all confidential material including prospect data, transactions, and client information belonging to the Company and shall take all reasonable care in making sure that such confidential material is not disclosed to any outsider without the written approval of the company.
6. Payee shall indemnify Company and hold harmless against any Loss or Damage incurred by the Company due to Payee’s gross negligence or misrepresentation during the duration of this agreement.
7. Payee shall use the most ethical practices while engaging in any sales activity.
8. This entire agreement shall be governed by the laws of the State of ___________.
Company Payee
_______________________ __________________________
By By
_______________________ __________________________
Name Name
_______________________ __________________________
Title Title
_______________________ __________________________
Date Date
i Any part of this agreement can be changed or overridden based on your needs
ii This date will give us information as to when this agreement was written and distinguish it from similar other agreements.
iii Fill out the company name here
iv Fill out the payee's full name here
v 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.
vi Targeted sales compensation for the full year
