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Sales & Proposals

Sales Representative / Commission Agreement

An agreement engaging an independent sales representative to sell on a company’s behalf in exchange for commission.

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Free general-purpose template, not legal advice. Fill in the placeholders and consider having a lawyer review it before you rely on it.

1. Parties & Effective Date

This Sales Representative Agreement ("Agreement") is entered into as of [Effective Date] between [Company Name] ("Company") and [Representative Name] ("Representative").

2. Territory & Products

Representative is authorized to sell [Products/Services] within [Territory — e.g. geographic area or accounts], on a [exclusive / non-exclusive] basis.

3. Commission

Representative earns a commission of [Rate]% of [Net Sales Price / Gross Revenue] on each completed sale, paid [Frequency], within [Number] days after Company receives payment from the customer.

4. Representative’s Authority

Representative may present and negotiate sales on Company’s behalf but may not sign contracts, set pricing outside [Approved Range], or bind Company to any obligation without Company’s prior written approval.

5. Expenses

Representative is responsible for their own business expenses (travel, materials, etc.) unless otherwise agreed in writing.

6. Independent Contractor Relationship

Representative is an independent contractor, not an employee of Company, and is responsible for their own taxes, insurance, and benefits.

7. Termination & Commission on Pending Deals

Either party may terminate this Agreement with [Number] days’ written notice. Representative remains entitled to commission on sales substantially completed before the termination date, as described in [Terms].

8. Governing Law & Signatures

This Agreement is governed by the laws of the State of [State / Jurisdiction].

Representative Signature: _______________________ Date: _______________

Company Representative Signature: _______________________ Date: _______________

Frequently asked questions

Free, no account needed — download this Commission Agreement for every sales rep you bring on.

The representative's authority limits (Section 4) are what actually protect the company — the template already scopes the rep to presenting and negotiating, not signing contracts or setting pricing outside an approved range, and that boundary should stay clear rather than get loosened informally. Section 7's commission-on-pending-deals language also matters more than it looks: without it, a rep who closes a deal right before termination could end up in a dispute over whether they've earned that commission.

The territory and products the rep can sell, the commission rate and what it's calculated on, when commission actually gets paid, the limits on the rep's authority to negotiate or bind the company, whether the arrangement is exclusive, and how commission on deals that were in progress at termination gets handled.

Fill in the commission structure, quota, and payment schedule with any PDF editor after downloading, or use "Sign this online for free" to edit it inside SignFastAi.

This page provides the agreement document. SignFastAi's core product is what actually gets it signed — upload the completed agreement, place signature fields, and send a secure link to your rep.

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