sales commission agreement template for agent and principal template

Sales Commission Agreement Template for Agent and Principal

bizzlibrary template file type image
Contract Letters
.docx (0.01 MB)

Are you looking to establish a commission agreement with an agent or principal? Look no further! At, we have the perfect solution for you - our professionally drafted Commission Agreement Template. This agreement template outlines the terms and conditions of a commission-based relationship, helping you establish clear guidelines and protect your business interests.

What is a Commission Agreement?

A commission agreement is a legal contract between a principal (the business or individual offering products or services) and an agent (the individual or company responsible for selling or promoting those products or services). This agreement establishes the terms and conditions under which the agent will earn a commission for their sales or referrals.

Why Do You Need a Commission Agreement?

A commission agreement is crucial for both principals and agents, as it provides clarity and protection for both parties involved. Here are some reasons why having a commission agreement is essential:

  1. Clear Understanding of Roles and Responsibilities: The agreement clearly defines the roles and responsibilities of both the principal and the agent. It outlines the tasks and targets that the agent is expected to achieve, ensuring that both parties are on the same page.
  2. Commission Structure and Payment Terms: The agreement specifies the commission structure, including the percentage or amount of commission the agent will receive for each sale or referral. It also outlines the payment terms, such as the frequency of payments and any additional conditions.
  3. Term and Termination: The agreement includes the duration of the commission agreement and the conditions under which either party can terminate the agreement. This protects both parties from abrupt or unfair termination.
  4. Confidentiality and Non-Compete: To protect the principal's business interests, the agreement may include provisions related to confidentiality and non-compete. This ensures that the agent does not disclose sensitive information or engage in activities that may harm the principal's business.
  5. Dispute Resolution: In case of any disputes or disagreements, the agreement provides a framework for resolving conflicts through negotiation, mediation, or arbitration, avoiding costly legal proceedings.

Get Your Commission Agreement Template

Don't leave your commission-based relationship unprotected. Download our comprehensive Commission Agreement Template in DOCX format and effectively establish the terms of your commission-based arrangement. It's a valuable tool for businesses and individuals alike.

Visit today to access a wide range of business document templates, including commission agreements, sales agreements, and more. Take control of your business relationships and ensure a secure and successful future!

The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained this site constitutes a solicitation, recommendation, endorsement, or offer by Bizzlibrary or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.


Kathryne Duke(7/20/2023) - GBR

Very pleased with the Doc template

Author. Content was provided by:

Harper Williams

Harper is a freelance senior template document and content creator at Bizzlibrary with over 4 years of experience in content creation and developing forms and kits. Harper's previous experience in sales consulting enables him to create value for companies that need help with improving their sales target and optimizing their department. Harper is from Montgomery Alabama and has previously worked at Regions Financial Corporation. He has a major in Communication & Information Sciences (CIS) from the University of Alabama in Tuscaloosa.

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