Sample Software Support Engineer Sales Commission Agreement Template
iSupport Engineer Compensation Agreement
Revision Date: ii ___________
This document describes the agreement between iii ______________ _
(“Company”) and iv (“Support Engineer”) regarding terms related to compensation.
Company and Support Engineer enter into this agreement whereby Support Engineer 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 preceeding 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:
viSupport Engineer is due a base salary of vii , payable every viii_______________.
Sales Compensation:
Targeted sales compensation for the full year is ix ________. The services sales compensation is not capped.
Other Compensation:
Support Engineer will be paid for all travel and lodging expenses related to sales activities. Auto travel will be reimbursed at the current federal reimbursement rate (Currently 0.45 cents per mile).
Support Engineer will be required to maintain a cell phone as part of conducting business. Support Engineer will be provided an allowance of $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.
xServices Commission
Quota:
Support Engineer does not have a quota for this Commission.
Sales Credits:
Sales Commission is paid to the Support Engineer based on the Services invoiced:
Service 1
Service 2
Support Engineer earns commissions only when an invoice to the customer is completely paid.xi
Gross Profit is calculated by using a standard cost rate of xii$55 per hour for services rendered and subtracting that cost from the service revenue. Gross Profit is credited to the Support Engineer.
Calculation:
Sales credits are accumulated and paid at a standard 10% of Gross Profit.
Example:
Assuming Support Engineer completes the following services in the first month – Invoice1 $8,000 (100 Hrs @ $80 per hour)
Commissions will be calculated as following:
Invoice 1 $8,000 ($8,000 – ($55 x 100)) = $2,500 (Gross Profit)
$2,500 x 10% = $250 (Commission)
xiiiQuarterly Customer Case Study Bonus
Quota:
Support Engineer does not have a quota for this Commission.
Sales Credits:
For every new Customer approved Case Study completed in the Quarter, the Support Engineer earns a flat bonus of $200.
Calculation:
The total number of new Customer approved Case Study completed and submitted within the quarter multiplied by $200.
Example:
Assuming Support Engineer has written and submitted 3 new Customer approved Case Studies.
The Support Engineer will earn a $600 bonus for the quarter.
Cap
There is no cap on any payouts to the Support Engineer.
Termination of Employment
On voluntary or involuntary termination of Sales Engineer employment with the Company, commissions will be paid on transactions dated prior to the termination date only. Any amounts owed to the Support Engineer will be according to employment regulations after withholding taxes and other dues.
Other Terms
1. Support Engineer agrees to follow all Federal and Local laws while engaged in providing services to the Company during the period of this agreement.
2. Support Engineer shall not engage in any other employment during the term of this agreement. Company reserves the right to require Sales Engineer to terminate any such other employment at Company’s sole discretion.
3. Support Engineer shall use the most ethical practices while engaging in any sales/service activity.
4. Support Engineer 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.
5. This entire agreement shall be governed by the laws of the State of .
Company Support Engineer
_________ _________
By By
_________ _________
Name Name
_________ _________
Date Date
_________ _________
i Any part of this document 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 sales person’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 dates for these values. Some companies may not have an end date specified.
vi Alternatively you can remove this section or phrase it such as “Base Salary is specified in a separate employment agreement.
vii Amount of base every payable period.
viii Weekly, Bi-weekly, Twice-monthly, Monthly, etc
ix If there is a targeted compensation for the full year, it can be entered here. Alternatively, this whole section can be removed.
x This incentive is based on Gross Profit. It also keeps the focus of the Support Engineer on minimizing the costs involved with the services provided.
xi Alternatively commission can be due on invoicing or shipping of goods or other events.
xii Cost can be a standard rate such as this, or can be derived directly from product cost or can be evaluated from purchase orders raised to supplying vendors.
xiii New Customer Case Study must be approved by the Customer and Manager to qualify for this bonus.
