Frequently Asked Questions
What should be included in the compensation plan of a sales partner agreement?
A comprehensive compensation plan is a crucial component of a sales partner agreement. It outlines the financial aspects of the partnership, ensuring both parties understand the monetary expectations and obligations. The compensation plan should detail all revenue sharing arrangements, commission structures, timelines for payment remittance, and any fee arrangements. Revenue sharing refers to the distribution of profits and losses between stakeholders, which in this case would be the organization and the sales partner. The commission structure, on the other hand, is a common form of sales compensation, where the sales partner earns a percentage of the sales they make. Timelines for payment remittance are also important to include in the compensation plan. This refers to the schedule of when the sales partner can expect to receive their commission or share of the revenue. Fee arrangements may also be included in the compensation plan. These could be fees that the sales partner is expected to pay to the organization, or vice versa. In addition to these, the compensation plan may also outline any expenses the sales partner is expected to bear without reimbursement. This could include costs related to sales literature, product samples, or other sales support services.
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