Commission Share Agreement Template for Australia

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Key Requirements PROMPT example:

Commission Share Agreement

"I need a Commission Share Agreement for my real estate agency to establish a 60/40 commission split with our new independent contractors, starting from March 2025, including monthly payment terms and performance targets."

Document background
This Commission Share Agreement is designed for use in Australian business contexts where parties need to formally establish arrangements for sharing commission earnings. It is particularly relevant for businesses operating commission-based sales models, partner networks, or referral systems. The document addresses key aspects such as commission calculations, payment schedules, performance requirements, and reporting obligations, while ensuring compliance with Australian tax laws, fair trading regulations, and relevant industry-specific requirements. It provides essential protection for all parties by clearly defining rights, obligations, and operational procedures for commission sharing arrangements. This agreement is commonly used in various sectors including real estate, financial services, and sales-driven industries where commission splitting between multiple parties is a regular practice.
Suggested Sections

1. Parties: Identifies and provides full details of all parties to the agreement

2. Background: Sets out the context and purpose of the agreement, including the nature of the business relationship

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation rules

4. Commission Structure: Details the basic commission split arrangement and how commissions are calculated

5. Payment Terms: Specifies when and how commission payments will be made, including payment methods and timing

6. Calculation and Reporting: Outlines the process for calculating commissions and requirements for reporting sales or revenue

7. Obligations of the Parties: Lists the key responsibilities and duties of each party under the agreement

8. Term and Termination: Specifies the duration of the agreement and circumstances under which it can be terminated

9. Confidentiality: Protects confidential information shared between the parties

10. Dispute Resolution: Sets out the process for resolving any disputes that arise

11. General Provisions: Standard contract clauses including governing law, entire agreement, and amendments

Optional Sections

1. Non-Compete and Non-Solicitation: Restricts parties from competing or poaching clients/employees - include when protecting business interests is crucial

2. Intellectual Property: Addresses ownership and usage of IP - include when the arrangement involves creation or use of intellectual property

3. Insurance Requirements: Specifies required insurance coverage - include when parties need specific insurance protection

4. Performance Targets: Sets minimum performance requirements - include when commission rights depend on meeting specific targets

5. Territory and Exclusivity: Defines geographical or customer segments - include when the agreement is limited to specific areas or customer groups

6. Training and Support: Outlines any training or support provisions - include when one party provides support to the other

7. Audit Rights: Provides right to audit commission calculations - include for high-value or complex commission structures

8. Force Majeure: Addresses unforeseen circumstances - include when business continuity risks need to be addressed

Suggested Schedules

1. Commission Rates Schedule: Detailed breakdown of commission rates, tiers, and any variations

2. Calculation Examples: Examples showing how commissions are calculated in different scenarios

3. Reporting Template: Standard format for commission reporting and documentation requirements

4. Performance Metrics: Detailed description of any performance targets and measurement criteria

5. Approved Products/Services: List of products or services covered by the commission arrangement

6. Territory Map: Geographical territories or customer segments if applicable

7. Key Personnel: List of key contacts and their roles in managing the commission arrangement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant Industries

Real Estate

Financial Services

Insurance

Retail

Technology Sales

Professional Services

Manufacturing

Wholesale Distribution

Telecommunications

Automotive Sales

Recruitment

Media and Advertising

Relevant Teams

Sales

Finance

Legal

Compliance

Revenue Operations

Business Development

Commercial Operations

Partner Management

Sales Operations

Commission Administration

Relevant Roles

Sales Manager

Business Development Manager

Commission Administrator

Finance Manager

Legal Counsel

Sales Director

Channel Partner Manager

Account Executive

Compliance Officer

Commercial Director

Partnership Manager

Revenue Operations Manager

Commission Analyst

Sales Operations Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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