Commission Agreement Template (Free Sample)

Here is What's in the Commission Agreement Template: 

  • An easy-to-use agreement that you can quickly update and customize
  • Sections: commission split, compensation structure, terms, and more
  • Created (and approved) by legal experts

Commission Agreement

This Commission Agreement (the “Agreement”) is entered into ____________________ (the “Effective Date”), by and between ________________________, with an address of _____________________________ (the “Principal”) and _________________, with an address of _______________________________, (the “Agent”), collectively “the Parties.”



Principal wishes to sell the following product(s):


Agent agrees to sell the aforementioned product(s) on behalf of the Principal for a commission.


THEREFORE, the Parties agree as follows:

  1. Sales Authorization. The Principal authorizes the Agent to sell the following product(s) on behalf of  the Principal _________________________________________________________ (the “Product”). Agent shall identify oneself as a duly authorized agent of the Principal for the sale of the Product. 

  2. Guidelines for Sales. The Agent must adhere to the following guidelines when selling the Product:

    1. Product prices will be set by the Principal.

    2. Principal will provide all promotional materials for the Agent's use to obtain sales.

    3. Principal will provide a Sales Contract template to be used by the Agent in all Product sales.

  3. Term. This Agreement shall commence upon the Effective Date, as stated above, and will continue until ____________________.

  4. Sales Territory. The Agent shall sell the Product in the following geographical location _______________________________________________________________________ (the “Sales Territory”). The Agent is not authorized to sell the Product outside the Sales Territory.

  5. Commission Earnings and Payment Structure. The Parties agree the Agent will be compensated as follows (the “Commission”):



  1. Principal-Agent Relationship. The Principal engages the Agent solely for the purpose of selling the product(s) listed in Section 1. The Agent may only enter into contracts and/or agreements on behalf of the Principal as it relates to the sale of said product(s). The Agent may not otherwise commit the Principal to any other obligations whatsoever without separate authorization from the Principal. 

  2. Non-Compete. The Agent will not sell a competing product for any competitor in the Sales Territory during the Term of this Agreement or for ____ years after the termination of this Agreement. 

  3. Confidentiality. During the course of this Agreement, it may be necessary for the Principal to share proprietary information, including trade secrets, industry knowledge, and other confidential information, to the Agent in order for the Agent to successfully sell the Product. The Agent will not share any of this proprietary information at any time. The Agent also will not use any of this proprietary information for the Agent’s personal benefit at any time. This section remains in full force and effect even after termination of the Agreement by it’s natural termination or the early termination by either party. 

  4. Termination. This Agreement may be terminated at any time by either Party upon written notice to the other party. The Principal will be responsible for payment of all Commissions earned up to the date of termination. 

Upon termination, the Agent shall return all the Principal’s content, materials, and associated work product, if applicable, to the Principal at its earliest convenience, but in no event beyond thirty (30) days after the date of termination.

  1. Representations and Warranties. Both Parties represent that they are fully authorized to enter into this Agreement. The performance and obligations of either Party will not violate or infringe upon the rights of any third-party or violate any other agreement between the Parties, individually, and any other person, organization, or business or any law or governmental regulation.

  2. Severability. In the event any provision of this Agreement is deemed invalid or unenforceable, in whole or in part, that part shall be severed from the remainder of the Agreement and all other provisions should continue in full force and effect as valid and enforceable. 

  3. Waiver. The failure by either Party to exercise any right, power, or privilege under the terms of this Agreement will not be construed as a waiver of any subsequent or future exercise of that right, power, or privilege or the exercise of any other right, power, or privilege. 

  4. Legal Fees. In the event of a dispute resulting in legal action, the successful Party will be entitled to its legal fees, including, but not limited to its attorneys’ fees.

  5. Legal and Binding Agreement. This Agreement is legal and binding between the Parties as stated above. This Agreement may be entered into and is legal and binding both in the United States and throughout Europe. The Parties each represent that they have the authority to enter into this Agreement.

  6. Governing Law and Jurisdiction. The Parties agree that this Agreement shall be governed by the State and/or Country in which both Parties do business. In the event that the Parties do business in different States and/or Countries, this Agreement shall be governed by _________________ law.

  7. Entire Agreement. The Parties acknowledge and agree that this Agreement represents the entire agreement between the Parties. In the event that the Parties desire to change, add, or otherwise modify any terms, they shall do so in writing to be signed by both parties.


The Parties agree to the terms and conditions set forth above as demonstrated by their signatures as follows:



Signed: _____________________________________

Name: _____________________________________

Date: _____________________________________


Signed: _____________________________________

Name: _____________________________________

Date: _____________________________________

Need help setting up? We’re here to help
We’re available by email, phone, or over a Zoom call to support you whenever you need it.