Sales Compensation Agreement
A sales compensation agreement is an agreement decided upon by the administrators within a business that stipulates any of a number of incentives for employees who work within that business. Usually the incentives revolve around commissions based on productivity and sales.
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Sales Compensation Agreements
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Sales compensation agreements are essentially promises built into a company's protocol that guarantee certain incentives for productive salespeople. The incentives usually are commissions on sales, but are not necessarily limited to commissions alone. Many incentives include allowances and transportation provided by the company in the event employees reach or exceed certain goals.
Sales Compensation Agreement Goals
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The goal of a sales compensation agreement is to encourage productivity amongst employees, increase sales, increase creative thinking amongst employees and to meet sales and marketing goals within a company quicker than what would be possible without incentives for productivity.
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Common Stipulations
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Most sales compensation agreements explain their purpose at the top of the agreement and follow with the stated goals that should be reached by any employee in order to benefit from the incentives, commissions and perks that are included within the agreement. Most agreements also include the date on which they will be activated and the definitions of eligibility.
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References
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