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Software Sales Commission Agreement

Software Sales Commission Agreement Template for Australia

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Key Requirements PROMPT example:

Software Sales Commission Agreement

"I need a Software Sales Commission Agreement for an Australian SaaS company that will engage five sales representatives to sell our enterprise security software, with a tiered commission structure starting from January 2025 and exclusive territories across different Australian states."

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Document background
The Software Sales Commission Agreement is essential for businesses engaged in software sales within Australia, establishing clear terms between software companies and their sales representatives. This document is typically used when companies engage sales professionals on a commission basis to sell software products or services. It addresses crucial aspects such as commission rates, payment schedules, performance metrics, and territory assignments while ensuring compliance with Australian legislation, including the Independent Contractors Act 2006 and relevant consumer protection laws. The agreement is particularly important in the current digital economy where software sales often involve complex licensing arrangements and recurring revenue models.
Suggested Sections

1. Parties: Identifies the software company (Principal) and the sales representative (Agent)

2. Background: Outlines the context of the agreement, including the software products and the parties' intentions

3. Definitions: Defines key terms used throughout the agreement

4. Appointment and Scope: Establishes the appointment of the sales representative and defines their territory/market

5. Term and Termination: Specifies the duration of the agreement and conditions for termination

6. Commission Structure: Details the basic commission rates and calculation methods

7. Payment Terms: Specifies when and how commissions will be paid

8. Performance Obligations: Outlines the sales representative's duties and performance expectations

9. Reporting Requirements: Details the sales reporting and documentation requirements

10. Intellectual Property: Protects the company's IP rights in the software

11. Confidentiality: Ensures protection of sensitive business information

12. Non-Compete and Non-Solicitation: Restricts competitive activities during and after the agreement

13. Dispute Resolution: Establishes procedures for resolving disagreements

14. General Provisions: Includes standard legal clauses such as governing law, notices, and assignment

Optional Sections

1. Training and Support: Details company-provided training and support when the company offers specific training programs

2. Marketing and Promotion: Includes when the sales representative has marketing responsibilities

3. Expense Reimbursement: Added when the agreement allows for expense reimbursement

4. Customer Data Protection: Required when the sales representative handles customer personal data

5. Multi-territory Provisions: Included for agreements covering multiple geographical areas

6. Team Management: Added when the sales representative manages other agents

7. Software Customization: Included when the sales representative can offer custom software solutions

8. Insurance Requirements: Added when specific insurance coverage is required

Suggested Schedules

1. Schedule A - Commission Rates: Detailed breakdown of commission rates for different products/services

2. Schedule B - Territory Definition: Detailed description of the assigned sales territory

3. Schedule C - Product List: List of software products covered by the agreement

4. Schedule D - Sales Targets: Specific sales targets and performance metrics

5. Schedule E - Reporting Templates: Standard forms for sales reporting

6. Appendix 1 - Code of Conduct: Guidelines for professional behavior and sales practices

7. Appendix 2 - Technical Requirements: Technical specifications and requirements for software demonstrations

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Applicable Laws
Approved Customer
Business Day
Commission
Competing Business
Confidential Information
Customer
Effective Date
Gross Sales Price
Initial Term
Intellectual Property Rights
License Fee
Net Revenue
New Customer
Performance Targets
Principal
Products
Qualifying Sale
Renewal Term
Representative
Sales Pipeline
Sales Quarter
Sales Report
Sales Territory
Software
Software License
Subscription Fee
Term
Territory
Third Party Products
Trademarks
Commission Period
Monthly Recurring Revenue
Annual Contract Value
Booking
Closed Deal
Commission Rate
Performance Metrics
Payment Terms
Termination Date
Clauses
Appointment
Term
Territory Assignment
Commission Structure
Payment Terms
Performance Requirements
Reporting Obligations
Intellectual Property
Confidentiality
Non-Competition
Non-Solicitation
Representations and Warranties
Termination
Independent Contractor Status
Compliance with Laws
Data Protection
Record Keeping
Audit Rights
Training and Support
Marketing and Promotion
Assignment
Force Majeure
Dispute Resolution
Governing Law
Indemnification
Insurance
Notices
Entire Agreement
Severability
Amendment
Waiver
Relevant Industries

Information Technology

Software Development

SaaS (Software as a Service)

Technology Consulting

Enterprise Software

Cloud Computing

Digital Services

E-commerce

Financial Technology

Healthcare Technology

Educational Technology

Relevant Teams

Sales

Legal

Human Resources

Finance

Sales Operations

Compensation

Contract Administration

Business Development

Channel Management

Revenue Operations

Relevant Roles

Sales Representative

Account Executive

Business Development Manager

Sales Manager

Channel Sales Manager

Regional Sales Director

Software Sales Specialist

Sales Operations Manager

Commission Administrator

Sales Compensation Analyst

Legal Counsel

HR Manager

Finance Manager

Contract Administrator

Industries
Independent Contractors Act 2006 (Cth): Regulates the relationship between principals and independent contractors, relevant for determining the status of sales representatives and their rights
Fair Work Act 2009 (Cth): Important if sales representatives are classified as employees rather than contractors, covering minimum entitlements, conditions, and protections
Competition and Consumer Act 2010 (Cth): Includes Australian Consumer Law provisions affecting software sales and consumer protection obligations
Electronic Transactions Act 1999 (Cth): Governs the validity of electronic transactions and digital signatures in software sales agreements
Copyright Act 1968 (Cth): Relevant for software licensing and intellectual property protection aspects of the software being sold
Privacy Act 1988 (Cth): Regulates the collection and handling of customer data in software sales processes
Income Tax Assessment Act 1997 (Cth): Governs taxation of commission income and relevant deductions
State Sale of Goods Acts: State-specific legislation governing sales transactions and contracts
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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