Free Sales Commission & Incentive Policy Template
Sales Commission & Incentive Policy
Introduction
This Sales Commission Policy outlines the commission structure and guidelines for sales representatives at [Your Company Name], a leader in digital technology solutions. The policy aims to motivate and reward sales performance while ensuring fairness and transparency in commission payouts.
Eligibility
Sales commissions are applicable to full-time sales representatives and account managers actively employed by the company.
Commission Structure
A. Commission Calculation
Commissions will be calculated based on the following formula:
Commission = (Sales Revenue * Commission Rate)
B. Commission Rate
|
Sales Target (USD) |
Commission Rate |
|
Less than $10,000 |
[5%] |
|
$10,000 - $25,000 |
[7%] |
|
Over $25,000 |
[10%] |
Performance Metrics
Commissions are based on the achievement of sales targets. Performance metrics include sales revenue generated within a calendar month.
Commission Period
Commissions will be calculated and disbursed on a monthly basis.
Commission Payouts
Payouts will be made via direct deposit on the 15th of the following month. Commissions for the previous month must exceed $100 to be eligible for payment.
Commission Clawbacks
Commissions may be subject to clawbacks or adjustments in the event of customer refunds or canceled orders. Any clawbacks will be deducted from future commission payouts.
Reporting And Documentation
Sales representatives are responsible for maintaining accurate records of their sales transactions. Failure to provide necessary documentation may result in delayed commission payouts.
Dispute Resolution
In the event of a commission dispute, sales representatives should follow the dispute resolution process outlined in the company's Employee Handbook.
Compliance And Legal Considerations
This policy is subject to all applicable labor laws and regulations. The company will comply with tax reporting requirements and withhold taxes as required by law.
Communication
Sales representatives will receive training and access to this policy documentation. Any updates or revisions to the Sales Commission Policy will be communicated to the sales team in a timely manner.
