Free Commission Agreements - Consulting: Consultant

Sample Consulting Consultant Sales Commission Agreement 

Consultant Compensation Agreement
Revision Date: [ii]____________

This document describes the agreement between [iii]________________________________ (“Company”) and [iv]____________________________________ (“Payee”) regarding terms related to compensation.

Company and Payee enter into this agreement whereby Payee provides consulting services to the Company and customers of company, in return for compensation specified in this agreement.


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:

[vi]Payee is due a base salary of [vii]______________, payable every [viii]_________________ at an hourly rate of ______________.

Variable Compensation:

Targeted variable compensation for the full year is[ix] ______________. The compensation is not capped.

Other Compensation:

Payee will be paid for all travel and lodging expenses related to consulting activities. Auto travel will be reimbursed at the current federal reimbursement rate ( Currently 0.37 cents per mile).

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.

[x]Consultant Revenue Commission

Payee does not have a quota for this Commission.

Revenue Credits:

Payee gets credit for any revenue directly billed by the Payee to any customers of Company.

Payee earns commissions as soon as timesheets are submitted to the company.[xi]


Commission amount is calculated as a percentage of credited revenue. Payee commission percentage is 3% (Three Percent) of credited revenue.


If Payee worked 150 hours at the Bill Rate of $100 per hour for the period, then commissions are calculated as follows.

150 x $100 = $15,000 at 3% = $450

[xii]Billed Hours Incentive


Payee does not have a quota for this Incentive.


Payee gets credit for any hours directly billed by the Payee to any customers of Company.


The number of hours billed for the full period, regardless of customer, is accumulated. If the total number of hours billed for the period is equal to or more than 150 Hours, then Payee is paid a flat bonus of $500 (Five Hundred).


If Payee worked 150 hours for the period, then the bonus is calculated as follows.

More than or equal to 150 = $500



Payee has no draw.


There is no cap on any payouts to the Payee.

Termination of Employment

On voluntary or involuntary termination of Payee employment with the Company, commissions will be paid on transactions dated prior to the termination date only. Any amounts owed to the Payee will be according to employment regulations after withholding taxes and other dues.

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. Payee shall not engage in any other employment during the term of this agreement. Company reserves the right to require Payee to terminate any such other employment at Company’s sole discretion.
  3. Payee shall use the most ethical practices while engaging in any sales activity.
  4. Payee 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 Payee
By _______________________ By_______________________
Name _______________________ Name_______________________
Title _______________________ Title_______________________
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 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 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 encourages higher levels of revenue.

[xi] Alternatively commission can be due on invoicing or other events.

[xii] This incentive encourages the payee to maintain a high level of billing on a periodic basis.