A commission agreement is a contract that sets out how a salesperson, agent or broker is paid a share of the sales they bring in. It defines the rate, what counts as a sale and when payment is due, which prevents disputes once the money arrives. Real estate agents, independent sales reps, agencies, producers and businesses with commission-based staff all rely on one.
This page includes 42 commission agreement templates, editable and free to download. They cover a real estate commission agreement, a tenant commission agreement, an independent contractor agreement, an agency agreement and a producer agreement, plus a sales commission agreement sample for general use.
Run two or three example deals through the formula before anyone signs. If both sides calculate the same payout, the wording is clear. Pay and contract rules vary by location, so have an accountant or lawyer review the final version.
Commission arrangements often sit inside other contracts. See our employment contract templates for salaried sales staff and sales plan templates for setting the targets commission is based on.
Commission Agreement Templates
Real Estate Commission Agreement Template
Regular Commission Agreement Template
Simple Tenant’s Commission Agreement Template
Independent Contractor’s Commission Agreement
Agency’s Commission Agreement Template
Producer’s Commission Agreement Template
Sample Commission Agreement Template
Specific Commission Agreement Template
Group Brokerage Agreement Template
Realtors Commission Agreement Template
Artwork Commission Agreement Template
Balnk Format Commission Agreement Template
Referral Commission Agreement Template
Sales Rep Commission Agreement Template
Important Details to include in a Commission Agreement
As mentioned earlier, it is very important for both employers and employees to prepare an official sales commission agreement. In many countries, the law requires a written commission agreement when you employ a person on commission.
A commission agreement should clearly state the rate of commission and how it will be calculated, awarded and paid to the employee. Both the employer and the employee must keep a signed copy of the agreement.
As an employee or employer, check that the commission agreement clearly defines the terms ‘sales’ and ‘profits’. This is important because commission is usually a percentage of either sales or profit, for example 15% of sales or 25% of profit. The agreement should state clearly when the commission is earned, for example on placement of the order, on delivery of the goods or on payment by the customer. It should also explain how returns, refunds or cancelled orders affect the calculation of the commission.
If the employer gives bonuses to its employees, the commission agreement should also define the term ‘bonus’ clearly. A commission is a fixed percentage of sales or profit, and a bonus may also be awarded as a fixed percentage of sales or profit, so it is important to keep them separate. To avoid disputes and errors in calculating commission, a sales commission agreement should explain the bonus plan and the commission plan separately.
Formal Commission Agreement Templates
Typical Commission Agreement Template
Special Commission Agreement Template
Broker’s Commission Agreement Template
Buyer Commission Agreement Template
Professional Commission Agreement Template
Company’s Commission Agreement Template
Online Course Commission Agreement
Sales Commission Agreement Template
Property Dealer’s Commission Agreement Template
Blank Format of Commission Agreement Template
Commission Sharing Agreement Template
Detailed Commission Agreement Template
Lease Dealer’s Commission Agreement Template
Sales Manager’s Commission Agreement Template
Types of Commission Agreements
A commission agreement is of many different types. Some of these types are as follows:
- Artist’s Commission Agreement.
- Agent’s Commission Agreement.
- Business Investments.
- Conditional Sales.
- Sales Commission Agreement.
- Independent Contractors.
- Financial Support.
- Corporate Duties.
- Online Commission.
- Commission Agreement for Agency.
- Real Estate Commission Agreement.
- Sales Reps Commission Agreement.
- Trading Commissions Agreement.
More Commission Agreement Templates
Manager’s Commission Agreement Template
Commission Agreement for Asset Management
Leasing Commission Agreement Template
Extensive Commission Agreement Template
Simple Commission Agreement Template
Commission Agreement Guide and Template
Handy Commission Agreement Template
Formal Commission Agreement Template
Sample Commission Agreement Offer Letter
Simple Artwork Commission Agreement Template
Agent’s Commission Agreement Template
Artist’s Commission Agreement Template
Media Rep Commission Agreement Template
Exclusive Commission Agreement Template
Defining How Commission Is Earned
Choose an agreement that explains the commission event and calculation, not just a percentage. Employment, agency and sales arrangements may have different legal requirements. To reconcile commission calculations with the underlying transactions, WordNExcelTemplates’ sales report templates can provide a separate record of sales activity.
- Identify the services, territory and authority involved.
- Define qualifying sales, calculation basis, exclusions and payment timing.
- Address cancellations, returns, records and the treatment of existing transactions when the relationship ends.
Worked Example
Illustration: a 5% commission on a sale of 1,000 is 50 only if 1,000 is the agreed commission base. The agreement should explain whether tax, delivery, discounts or refunds affect that base and when the commission becomes payable.
Common Mistakes to Avoid
Avoid using “net sales” without defining it. Obtain appropriate review for deductions, continuing commission and termination provisions.
Related Templates
- Artist Management Contract Templates
- Agency Agreement Templates
- Wedding Photography Contract Templates
- Franchise Application Form Templates
Frequently Asked Questions
Is commission earned when an order is signed or paid?
Use the event actually agreed and permitted by applicable rules. State it explicitly rather than leaving the parties to infer it.
What if a customer returns the product?
Describe the agreed adjustment process and records. Do not assume a clawback is allowed merely because a sample contains one.
