18 Free Commission Agreement Templates (Word & PDF)

When you hire a salesperson, broker, or independent agent, a clear commission agreement protects both sides. It spells out how much the agent earns, when they get paid, and what is expected in return. Getting these terms in writing prevents most disputes before they start.

Below are 18 free commission agreement templates and samples covering sales, real estate, leasing, artwork, software, and more. Choose one that fits your situation, then adapt it to your needs.

What Is a Commission Agreement?

A commission agreement is a written contract between a company or principal and an agent or salesperson. The agent agrees to sell products or services, or to find buyers, and in exchange receives a percentage of each sale or a fixed fee. It defines the duties of each party, the commission rate, payment timing, and how the relationship can end.

Commission agreements are common in real estate, insurance, retail, direct sales, software, and creative fields. They can be used for employees, independent contractors, and outside brokers.

Why Use a Commission Agreement Template?

Clear expectations. Both parties know what is owed and when.
Fewer disputes. Written terms reduce disagreements about rates, territories, or timing.
Time saving. A template gives you standard clauses so you only change the details.
Professional image. A well-formatted agreement shows you take the relationship seriously.
Flexible use. Templates can be adapted for many industries and deal types.

What to Include in a Commission Agreement

Names and contact details of the principal and the agent
Description of the products, services, or property being sold
Commission rate or amount, and how it is calculated
When and how commissions are paid, and any minimum sales thresholds
Territory, exclusivity, and duration of the agreement
Expense responsibilities
Treatment of refunds, returns, and chargebacks
Confidentiality and non-compete terms, if used
Termination conditions and notice period
Governing law and dispute resolution
Signatures and dates

Note: This content is for general information and is not legal advice. Have an attorney review any contract before you sign it, since rules differ by location and industry.

Free Commission Agreement Templates

Select a template below and use the download link under each preview.

Types of Commission Agreements

Sales commission agreement: Pays a percentage of each sale made by a salesperson or representative.
Real estate commission agreement: Sets the broker or agent’s percentage when a property is sold or leased.
Independent contractor agreement: Covers non-employee agents who earn commission for referrals or sales.
Commission sharing agreement: Splits a commission between two or more parties.
Artwork or creative commission agreement: Covers work made to order, including price, deadlines, and rights.

How to Write a Commission Agreement

Identify the parties and their roles.
Describe exactly what the agent will sell or do.
Set the commission rate, whether a percentage, flat fee, or tiered structure.
Explain when a sale counts for commission and when payment is due.
Cover expenses, returns, and what happens to commissions after termination.
Add confidentiality, exclusivity, and dispute terms as needed.
Review the draft with a legal professional, then have both parties sign.

Tips for a Strong Agreement

Use plain, specific language, especially for the commission formula.
Include examples of how commissions are calculated.
Define what happens with refunds or cancelled sales.
Set a fixed payment date, such as within 30 days of receipt of funds.
Keep signed copies for both parties.
Review and update the agreement when rates or duties change.

Frequently Asked Questions (FAQs)

What is a commission agreement?

It is a contract in which an agent agrees to sell goods or services, or arrange a deal, in exchange for a percentage or fee on each sale.

What is a typical commission rate?

Rates vary widely by industry. Real estate, insurance, retail, and software sales all use different percentages, so set yours based on your market and margins.

Is a commission agreement legally binding?

When properly drafted and signed by both parties, it can be a legally binding contract. Consult an attorney for your specific situation.

Can an employee have a commission agreement?

Yes. Employees can earn commission in addition to or instead of salary, but employment laws about minimum pay and overtime may apply.

When should commission be paid?

The agreement should state it clearly, such as monthly or within a set number of days after payment is received from the customer.

What happens if a sale is cancelled or refunded?

Many agreements allow the company to reduce or reclaim commission on cancelled sales. Define this clearly in writing.

Are these templates free?

Yes, all templates on this page are free to download. Adapt them to your situation and have them reviewed by a professional.

Final Thoughts

A clear commission agreement builds trust and keeps everyone focused on results. With 18 templates to choose from, you can find a starting point for almost any sales, real estate, or creative arrangement. Customize the terms, get legal review, and sign it before work begins.

What Is a Commission Agreement?

Why Use a Commission Agreement Template?

What to Include in a Commission Agreement

Free Commission Agreement Templates

Commission Sharing Agreement Template

Independent Contractor’s Commission Agreement Template

Tenant’s Commission Agreement Template

Broker Commission Agreement Template

Elemental Commission Agreement Sample

Basic Commission Agreement Template

Company’s Commission Agreement in MS Word

Agent’s Commission Agreement Template

Real Estate Commission Agreement Template

Agency’s Commission Agreement Example

Artwork Commission Agreement in DOC Format

Commission Agreement Guideline Template

Online Course Materials Commission Agreement Template

Simple Commission Sales Agreement Template

Sample Sales Commission Agreement Template

Blank Commission Agreement in DOC Format

Leasing Commission Agreement Sample

Software Sales Manager Commission Agreement Template