Working with someone or some company needs an agreement. It contains many important things about the job and money. If this is your first time making this. Please consider this 8 part of commission agreement before making the letter.
1. Declare Parties Of Agreement
There are 2 or more parties between an agreement. At first part of commission agreement, you should declare the parties.
For example an agreement between the company and bank. It means that they are two parties here. First is the company, and the second is the bank.
This is to make the agreement more clear so the reader will easy to understand the terms of the agreement.
2. Terms Of Agreement
The second important thing to write in commission agreement is about the terms. This part can clarify the rules to do this agreement.
For example, this part can mention about when the agreement will end. Or how to extend the agreement.
This part consists of some duty that needs to do by the parties. For example commission agreement between employee and company.
This part would explain the employee’s duty every day. For example, how many hours they must work. What kind of job they must do and etc.
Beside that, this agreement also can contain some company duties to the employees. Such as giving a safe working environment, or giving fee as the agreement that has been made before between them.
The responsibilities are more details than duties. It can tell about how the company will treat the employees. And the employee’s commitment to their job.
This part has to be clear enough as in commission agreements printable in this article. You can use this printable file as a reference for your agreement.
5. Reporting Activity
The employee needs to make some report. For example an annual report about the job they have done.
In this part, you can write the rules about when they must finish and collect reports to company leaders. It depends on how often the company wants to take the report. You can make it weekly, monthly, or annual report.
This report is a form of responsibility and transparency between the company and the employee. This report can show the progress of the company. So make sure you write this part as in commission agreements pdf here.
6. Compensation Structure
This part is to explain the details about how the company gives compensation. For any company, they choose to give a monthly salary.
But if you make a commission agreed to a sales marketer maybe you want to make it in percentage. For example, every box of sugar cost 10 dollars.
As a production company, you need 5 dollars for staff and staple. Then you want to have 3 dollars for having profit. You can write that money which has to collect to the company is 80% of the sales. Or 8 dollars per box.
Write it clearly in percentage or number. So the employee or sales will easier to understand. It also easier to manage because using an easily calculated number.
7. Other Important Things
Don’t forget to explain more important things. For example expected sales, commissions contingencies, or expense reimbursement.
Make sure that every little thing that maybe has a probability to be a big problem write clearly in this agreement. To make it easier you can download commission agreements pdf as an example here.
To end the agreement, all parties have to sign the letter. It is a form of formal and legality. Once they sign the letter it means that they agree.
They have to obey the regulations. And if one of them breaking the rules, another party can sue them to get their rights.
Eight things above are important to every commission agreement. There are many purposes for making this agreement. You can make it depend on your need. Download this template and make sure you write the best agreement letter.