Contract Checklist

Sales Commission Agreement Review Guide

Sales contracts are all about the math. Ensure your 'unlimited earning potential' isn't actually capped by hidden clauses.

Critical Red Flags

Earnings Caps: Hidden limits on how much commission you can earn in a single quarter/year.

Unfair Clawbacks: Returning earned commission if a customer churns 11 months later after you've left.

Management Discretion: 'Company reserves right to change targets/payouts at any time without notice'.

Excessive Payment Lag: Waiting more than 30 days after the company has received the customer's cash.

Must-Have Clauses

Commission Tiers & Accelerators: Clearly defined percentages that increase as you exceed 100% quota.

Payment Triggers: Is it triggered by 'Booking' (signed contract) or 'Collections' (cash in bank)?

Termination Commissions: Right to get paid for deals that close within 30-90 days after you leave.

Audit Rights: Right to see the calculation sheet for how your commission was derived.

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