Empty space
1x
2x
3x
Sales Compensation Plan
bh b
Prepared for
[Employee name]
Prepared by
[Company Name]
Sales Compensation Plan
This document describes the agreement between [Company Name] (“Company”) and [Employee Name] (“Payee”) regarding terms related to sales incentive compensation. Company and Payee enter into this agreement whereby Payee provides services to the Company in return for compensation specified in this agreement.
Employee Details:
Employee Details | |
Employee Name: | [Employee Name] |
Title/Designation: | [Employee Designation] |
Joining Date: | [Hire Date] |
Reporting Manager: | [Reporting Manager Name] |
Reporting Manager Designation: | [Reporting Manager Designation] |
Commission Fiscal Year: | FY [Commission Fiscal Year] |
Commission Plan Term: | [Commission Plan Term] |
Commission Plan Validity: | [Commission Plan Start Date] TO [Commission Plan End Date |
Salary | |
Base Salary | [Base Salary] |
Sales Incentive | [Sales Incentive] |
Compensation Mix | [Base: Incentive Ratio] |
On Target Earning | [On Target Earning] |
Incentive Model: Sales incentive components | ||
Tier 1 | ARR up to [Tier 1 Amount] /Month | [Tier 1 %] of ACV |
Tier 2 | ARR between [Tier 2 Min Amount] - [Tier 2 Max Amount] / Month | [Tier 2 %] of ACV |
Tier 3 | ARR above [Tier 3 Amount] /Month | [Tier 3 %] of ACV |
All commissions will be calculated and paid once every month, for the preceding month. Commissions will be calculated and paid out as part of the next payroll cycle, following the month for which commissions are calculated.
Expenses
The Account Executive will be paid for all travel and lodging expenses related to sales activities within 30 days of being presented with the receipts and a completed and accepted expense reimbursement form.
Draw
Payee receives a monthly un-recoverable draw against the sales incentive plan as follows based on the participation and completion of the 90 Day Onboarding Program.
Month 1 | Month 2 | Month 3 | |
Non-recoverible Draw | [Month 1 Non-Recoverable Draw%] | [Month 2 Non-Recoverable Draw%] | [Month 3 Non-Recoverable Draw%] |
Value | [Month 1 Non-Recoverable Draw $] | [Month 2 Non-Recoverable Draw $] | [Month 3 Non-Recoverable Draw $] |
- Clawback – In order to receive your full commission with no clawback, the customer must stay live for 3-months from the day we start billing the customer. If a customer cancels short of the 3-month mark you will have a prorated amount clawed back from your commission against the sales made.
- Draw Clawback – If payee voluntarily leaves the position within the first 6 months of this plan, the Draw payment(s) will be due back to the Company through a payroll deduction from any monies owed to Payee.
- Splits – Commissions can be split with other Payees, on a deal-by-deal basis at the discretion of the VP of Sales.
- Termination of Employment – On voluntary or involuntary termination of Payee employment with the Company, commissions will be paid on transactions dated prior to the termination date only. Any amounts owed to the Payee will be according to employment regulations after withholding taxes and other dues.
Other Important Terms
- Payee agrees to follow all Federal and Local laws while engaged in providing services to the Company during the period of this agreement.
- Payee shall not engage in any other employment during the term of this agreement. Company reserves the right to require Sales Rep to terminate any such other employment at Company’s sole discretion.
- Payee shall use the most ethical practices while engaging in any sales activity.
- Payee agrees to protect all confidential material including prospect data, sales data, and client information belonging to the Company and shall take all reasonable care in making sure that such confidential material is not disbursed to anyone outside the company.
- This entire agreement shall be governed by the laws of the State of [Jurisdiction State] .
- VP of Sales reserves the right to override the terms of this agreement without cause.
Reporting Manager:
[Reporting Manager Name]
Employee Name:
[Employee Name]
Signature
Assign signer 1
Signature
Assign signer 2
Empty space
1x
2x
3x
DISCLAIMER: Revvsales, Inc is not a law firm. The content provided herein is for general information purposes only, and does not constitute legal advice. Revvsales, Inc and its partners make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of any information mentioned hereunder. The use or reliance of any information contained herein is for your personal use and solely at your own risk. You agree to fully release and indemnify Revvsales, Inc from any liability associated with the use of this content. You are advised to obtain independent legal advice before taking or refraining from any action on the basis of the content provided here.
DISCLAIMER: Revvsales, Inc is not a law firm. The content provided herein is for general information purposes only, and does not constitute legal advice. Revvsales, Inc and its partners make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of any information mentioned hereunder. The use or reliance of any information contained herein is for your personal use and solely at your own risk. You agree to fully release and indemnify Revvsales, Inc from any liability associated with the use of this content. You are advised to obtain independent legal advice before taking or refraining from any action on the basis of the content provided here.
This template is available as a form
Free Sales Compensation Plan Templates
Use this pre-formatted and comprehensive template to create the best sales compensation plan based on your business dynamics and sales environment.
RELATED RESOURCES:
Our templates are 100% customizable, follow these steps
ACHIEVE MORE:
30,000+ customers leverage Revv to drive business growth and you can too!
Automate your document workflows, take the tour