Free Commission Agreements - Telecom Reseller: Sales Rep

Sample Telecomm Reseller Agent Commission
Plan Template
iTelecomm Reseller Agent 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.
Reseller Agent is an independent contractor and can have sub sales reps under them.


This agreement covers the period starting from v_______________ and ends on ________________.
All commissions will be calculated and paid once every month, for the preceding month. Commissions will be calculated and paid out as part of the next payment cycle, following the month for which commissions are calculated.


Sales Rep gets direct credit for all sales sold by Sales Rep or sub sales reps.

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.

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:
xUnlimited Data Plan
Minutes 500
Caller ID
Sales Rep earns commissions only when an activation or additional sales has happened, service has been initiated by the carrier and carrier has paid the commissions.

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
Unlimited Data Plan                    $200
Minutes 500                               $75
Caller ID                                   $9



Assuming Sales Rep completes the following sales in the first month
Activation1 Unlimited Data Plan $400
Activation2 Minutes 500 $100
Upgrade3 Caller ID $8.00
Commissions will be calculated as following:
Activation 1 $400 = $200
Activation 2 $100 = $75
CellarStone, Inc. 2010 Copyright Page 4 of 5
Upgrade 3 $15 = $8
Total Commission: $284
Deactivations within 6 months of activation will be charged back to the Payee at the original commission rate.


There is no cap on any payouts to the Sales Rep.

Termination of Agreement

On voluntary or involuntary termination of Sales Rep engagement 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 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 represent the products of the company positively and with the highest standards.
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 disclosed to anyone outside the company without its written approval.
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 rephrase 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 or change it based on your needs
x Alternatively, replace products with territory, customers or types of business.