ContractCommission Agreement • May 27th, 2025
What is a Commission Agreement? A commission agreement is a written agreement between a business organization and an individual. The business possesses services or goods for sale, while the individual markets the services or goods on its behalf. The company promises to compensate the individual through a commission, which is a fee for every successful business transaction that increases company sales. There are two basic types of commission arrangements: sales and real estate commission agreements. A sales commission contract lays out the payment details a company has to pay to a salesperson, where a salesperson can be an employee or independent contractor. A real estate commission contract is an arrangement between a seller and an agent, where the seller agrees to give an agent a portion of the sales once a buyer purchases his property. The Different Forms of Sales Commission Every company needs to have a sales commission structure that increases its profitability. According to Forbes