Salesmen are mostly hired on commissions and bonuses on the sale that they make for the company they work in and the agreement that includes the information about what their targets will be and how much they will get as the commission on each sale is known as the sales representative agreement.
Brief Description of Sales Representative Agreement:
It is a common knowledge that the company with most sales is the company that makes more profit and stands ahead of its competitors. This is why companies always focus more on their sales staff and employers do whatever it takes for the sales team to become the most valuable and successful team in the market. Employers understand that no matter how good a company is; the salesmen are the real faces of the company that meet with potential clients and partners in the market and present the policies and products represented by the company to the buyers. This is why it is really important to keep the sales representative staff members happy and satisfied with their jobs and responsibilities. When it comes to satisfaction and loyalty, the money is the most important thing that an employee can think of.
There is respect, additional benefits and career opportunities but when it comes to most people, they always pick a job with more money than the job that has better career opportunities. This is why; employers hire the sales staff on commissions which means when a salesman makes a sale, specific portion of the profit goes to the salesman as the salary or incentive. This not only keeps the salesmen happy and satisfied with the company but also motivates them to make more sales and earn bigger bonuses and more commissions. But when a salesman earns more sales in his field, it can also make him greedy and ask for higher commission to the employer and it can create a difficult situation for the employer and company.
For example, when a successful salesman asks for more money, the company has to pay him or he will leave the job and will join another company and use his skills and expertise for their profit and success. In order to make sure that doesn’t happen and employers and employees stick to what they agreed to, employers ask their sales representatives to sign sales agreements with the company. This agreement benefits both the employer and the sales staff as the employer can’t deny to give them the agreed percentage of commissions on each sale and the salesmen can’t ask the company for more money more than they agreed on.
Here is preview of a Free Sample Sales Representative Agreement Template created using MS Word,
Key Elements to add in the Sales Representative Agreement:
- Name of the employer/company
- Name of the employee/sales representative
- Product or services details that are offered by the company
- Terms and conditions of the agreement
- Mutually agreed clauses of the agreement
- Compensation for the employee
- Commission percentage for the sales representative
- Limitations of the employee and agreement
- Termination of the agreement
- Validation of the agreement
- Results of violation of the agreement
- Signature of employer and employee
Here is download link for above shown free Sales Representative Agreement Template,