Free Commission Agreements - Manufacturing: Inside Sales Rep

Sample Manufacturing Inside Sales Rep Sales Commission Agreement Template
iManufacturing Inside Sales Rep Compensation Agreement
Revision Date: ii____________

This document describes the agreement betweeniii________________________________ (“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.


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:
viSales Rep's base salary (if any) is specified as part of a separate agreement.
Sales Compensation:
Targeted sales compensation for the full year isvii ________. 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.

Product Sales Commission
Sales Credits:
Sales Commission is paid to the Sales Rep based on the sale of the following products that the insider sales rep is involved in directly:
xFlow Meter
Glucose Monitor
Sales Rep earns commissions only when an invoice to the customer is completely paid.xi
Sales Revenue minus Tax and Shipping charges are credited to the Sales Rep.
Sales credits are provided to the Sales Rep. Based on the product being sold the sales rep is paid different commission rates.
Commission Rates
Products Commission Rate
Flow Meter 5%
BloodPressure Monitor 7%
Assuming Sales Rep completes the following sales in the first month-
Invoice1 Flow Meter $60,000
Invoice2 Blood Pressure Monitor $30,000

Commissions will be calculated as following:
Invoice 1 $60,000 at 5% = $3.000
Invoice 2 $30,000 at 7% = $2,100
Total Commission: $5,100

Quarterly New Sales Bonus


Sales Rep has a quota requirement of xii_______________ of new sales revenue for the quarter.

Sales Credits:

Sales revenue can be product or service sales. Sales has to be made to brand new customers.

Sales Rep earns commissions only when an invoice to the customer is completely paid.xiii
Sales Revenue minus Tax and Shipping charges are credited to the Sales Rep and compared to the Quota.


Sales credits are accumulated and compared against the quarterly quota. If the quota is exceeded, Sales Rep gets a quarterly bonus of $5,000.


Assuming Sales Rep has a quarterly goal of $250,000-
If Sales Rep makes $245,000 in Quarterly New Sales, then Sales Rep does not get any bonus.
If Sales Rep makes $255,000 in Quarterly New Sales, then Sales Rep gets the bonus of $5,000.

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.

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.


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

1. Sales Rep agrees to follow all Federal and Local laws while engaged in providing services to the Company during the period of this agreement.
2. 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.
3. Sales Rep shall use the most ethical practices while engaging in any sales activity.
4. 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.
5. This entire agreement shall be governed by the laws of the State of ___________.
Company Sales Rep
________________________ ________________________
By                                              By
________________________ ________________________
Name                                         Name
________________________ ________________________
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 Alternatively you can remove this section or phrase it such as Base salary is specified in a separate employment agreement.
vii Targeted sales compensation for the full year
viii Search for current IRS mileage rate .
ix You can put any amount or you may completely remove it or change based on your needs
x You can replace it with any product or item
xi Alternatively commission can be due on invoicing or shipping of goods or other events.
xii Enter quota amount here. It could be setup to be a monthly or quarterly quota. It is also possible to not have a quota at all.
xiii Alternatively commission can be due on invoicing or shipping of goods or other events.
xiv This part of the agreement can be modified or completely deleted