A sales commission proposal is a document where all the terms and conditions of the payment of sales commission are laid out. A sales person or executive earns a commission from the client after selling him a product in return for his ideas and services, which is like a performance incentive. This commission is usually a small percentage of the total sales figure or the profit margins of the company. The sales commission proposal presents a figure that will be paid to the broker or sales executive, whether it will paid in installments or at one go, under what conditions will the broker’s commission be terminated and other related terms and regulations.

Sample Sales Proposal:

Name of company: New Age Enterprises

Address: 739 Ashton Drive, Waco

Proposal prepared on: January 11, 2012

Proposal prepared by: Ryan Philips

Manager, New Age Enterprises

Proposal submitted on: January 12, 2012

Proposal submitted to: Danny Dorris

Sales executive, New Age Enterprises

Proposal name: Proposal describing details of sales commission

Purpose: The purpose of this proposal is make a sales commission offer to the sales executive so that he gets information about how much he will get paid if he is successfully able to make the deal with the client

Other details:

  • The sales executive will get an annual compensation of $90,000 plus 5% of all the sales he makes within his territory as sales commission

  • The sales commission will be paid after the final sales agreement is signed with the company
  • Commissions will be split into 50:50 if orders originate in another territory