Free Commission Agreements - Logistics: Sales Rep

Sample Logistics Sales Rep Compensation Plan
Logistics Sales Rep Compensation Agreement
Revision Date: __________________

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.


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 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.

Sales Commission:

Sales Rep has a quota requirement of x_ in Sales Revenue for every quarter.

Sales Credits:

Sales Commission is paid to the Sales Rep based on new sales in the following lines of Business
xiAir Exports
Air Imports
Sea Exports
This incentive is applicable if the customer category is New. The customer’s category will be changed to ‘Operational’ after six months.
Sales Rep earns commissions only when an invoice to the customer is completely paid.
Sales Revenue are credited to the Sales Rep and compared to the Quota.


Sales credits are accumulated and compared against the quarterly quota. Based on the percentage of quota achievement a different sales commission percent is applied against the Net Sales Revenue (after tax ) and commission amount is calculated.
Commission Tiers
Quota Achievement
Commission Rate
Air Exports
Air Imports
Sea Exports
0% to 79.99%
80% to 99.99%
100% to 149.99%
150% and above
The total quarterly quota achievement is determined first and then the different sales commission are applied to the various invoices revenues.


Assuming Sales Rep has a goal of $100,000 and in the first month completes the following sales-
Invoice1 - Air Exports - $60,000
Invoice2 - Sea Exports - $10,000

Commissions will be calculated as follows:
Invoice 1
$60,000 at 3%
= $1,800
Invoice 2
$10,000 at 4.5%
= $ 450
Total Commission: ($2,250)

Sales Commission - Operational


Sales Rep does not have a quota for this Commission.

Sales Credits:

Sales Commission is paid to the Sales Rep based on the sales made to customers for whom the category has been set as Operational.
Sales Rep earns commissions only when an invoice to the customer is completely paid.


Sales credits are accumulated and paid at a standard 2% of Net Sales Revenue (omitting tax).


Assuming Sales Rep completes the following sales in a month –
Invoice1 Revenue $8,000
Tax & Shipping charges $500
Commissions will be calculated as following:
Invoice 1 $8,000 ($8,000 – $500) = $8,000 (Net Sales Revenue)
$8,000 x 2% = $160 (Commission)


During the first three months of employment with the company, the Sales Rep is provided a recoverable draw of $3,000 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 removed it or change based on your needs
x 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.
xi Replace with appropriate Line Of Business; Line of Business indicates the mode of shipments. Alternatively, replace products with customers or types of business.