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Simple Sales Rep Agreement

A Simple Sales Rep Agreement: What You Need to Know

If you`re a business owner looking to establish a sales team, it`s crucial to have a clear agreement in place with your sales representatives. A sales rep agreement outlines the terms and conditions of the relationship between your business and the representative.

It`s important to note that a simple sales rep agreement can be just as effective as a more complex one. Here are some key aspects to consider when drafting a simple sales rep agreement.

Scope of Work

The agreement should clearly outline the scope of work that the sales representative is expected to perform. This includes the products or services they will be selling, the territories they will be covering, and any specific targets or goals they will be expected to meet.


Compensation is a critical aspect of any sales rep agreement. It`s essential to ensure that the representative is motivated to sell your products or services. Compensation can be structured in various ways, such as commission-based pay or a base salary with commission on sales.


It`s essential to include a termination clause in the agreement. This outlines the conditions under which the agreement can be terminated, as well as any notice requirements. It`s important to have a clear understanding of what happens to any outstanding compensation or commissions if the agreement is terminated.

Confidentiality and Non-Disclosure

As a business owner, you likely have confidential information that you need to protect. It`s crucial to include a confidentiality and non-disclosure clause in the sales rep agreement to ensure that the representative does not share any confidential information with others.


Indemnification refers to the process of protecting one party from legal liability. It`s important to include an indemnification clause in the agreement to protect your business from any legal liabilities that may arise due to the actions of the representative.


A simple sales rep agreement can be an effective tool for establishing a clear relationship with your sales representatives. By including the key aspects outlined in this article, you can ensure that the agreement is fair, clear, and protects the interests of both parties.