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Outside Sales Commission Agreement
"I need an Outside Sales Commission Agreement for our software company that includes strong IP protection clauses and a tiered commission structure based on subscription length, with the agreement starting January 1, 2025."
1. Parties: Identifies the contracting parties - the company and the sales representative
2. Background: Explains the context of the agreement and the parties' intention to enter into a sales commission relationship
3. Definitions: Defines key terms used throughout the agreement
4. Appointment and Status: Establishes the sales representative's appointment and confirms independent contractor status
5. Territory and Products: Defines the geographic territory and products/services the representative is authorized to sell
6. Commission Structure: Details the commission rates, calculation methods, and payment terms
7. Sales Representative's Obligations: Outlines the duties, responsibilities, and performance expectations
8. Company's Obligations: Specifies the company's responsibilities, including support, training, and resources
9. Term and Termination: Specifies the agreement duration and circumstances for termination
10. Confidentiality: Protects confidential information and trade secrets
11. Non-Solicitation: Prevents solicitation of customers and employees during and after the agreement
12. Reporting and Records: Requirements for sales reporting and record-keeping
13. General Provisions: Standard legal provisions including governing law, notices, and amendments
1. Non-Competition: Restricts the representative from competing during and after the agreement - include when protecting market share is crucial
2. Intellectual Property: Addresses ownership and usage of IP - include when the representative will create or use significant IP
3. Insurance Requirements: Specifies required insurance coverage - include when representative's activities pose significant risks
4. Minimum Performance Standards: Sets specific sales targets or quotas - include when performance benchmarks are essential
5. Training and Support: Details specific training requirements - include when extensive product knowledge is required
6. Expense Reimbursement: Outlines reimbursable expenses - include when representative incurs significant business expenses
7. Sub-agents: Rules for appointing sub-agents - include when representatives may need to build teams
8. International Sales: Provisions for international transactions - include for cross-border sales activities
1. Schedule A - Territory Description: Detailed description of the assigned sales territory with specific boundaries
2. Schedule B - Product List and Pricing: Comprehensive list of authorized products/services and their pricing structure
3. Schedule C - Commission Rates: Detailed commission structure, including any variations based on product type or volume
4. Schedule D - Sales Targets: Specific sales quotas and performance metrics
5. Schedule E - Reporting Templates: Standard forms for sales reporting and documentation
6. Schedule F - Company Policies: Relevant company policies that apply to sales representatives
7. Appendix 1 - Sales Process Guidelines: Step-by-step guide for sales procedures and best practices
8. Appendix 2 - Customer Service Standards: Required customer service levels and procedures
Authors
Manufacturing
Technology
Consumer Goods
Industrial Products
Professional Services
Telecommunications
Healthcare Products
Building Materials
Financial Services
Software and SaaS
Wholesale Distribution
Medical Devices
Agricultural Products
Automotive
Real Estate
Sales
Legal
Human Resources
Finance
Operations
Business Development
Contract Administration
Compliance
Tax
Risk Management
Sales Director
Chief Revenue Officer
Business Development Manager
Sales Operations Manager
Channel Manager
Regional Sales Manager
VP of Sales
Sales Representative
Account Executive
Territory Manager
Commercial Director
Sales Administrator
Contract Manager
Legal Counsel
HR Director
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