Presenting sales commission is a proven way to boost up sales volume of the company or business and also considered as an excellent way to compensate sales staff for their excellent services as well as to promote more sales of the product or the service. Signing a commission sales agreement is a best way to fix a percentage of sales commission for hired employees or sales agents. You can pay (or get paid) a lot of different ways: by the hour, on salary, or on commission. If someone's pay is based in whole or in part on commission, they should sign a Commission Agreement before their first day. Rocket Lawyer provides information and software only. Rocket Lawyer is not a "lawyer referral service" and does not provide legal advice or participate in any legal representation. Define every term so there is no misunderstanding or interpretations that will not be in your favor should it go to court. PandaTip: Use the text field in this section of the template to detail your company’s sales commission policy. Be sure to list any relevant details, such as quotas, variable commission percentages, draws, or payout schedules. It spells out the reasons why and how to design the agreement. You get to learn about the mandatory steps too.