A Sales Rep Agreement is the legal contract between the company and person who sells the service or product in exchange for compensation. The agreement lists the terms and conditions and recitals when hiring an Independent Sales Representative on the company’s behalf.


An independent sales rep agreement is necessary for any business that consists of sales representatives. The sales force is the public face of the company, so it’s important that the organizations and individuals that are in charge of marketing the services and products are selected carefully.

In the sales rep agreement, it should state the following:

  • What cost products are sold at
  • Which people the products will be sold to
  • Where they can be sold
  • What the commission/compensation structure is
  • Responsibilities of each party
  • Termination agreements

Companies benefit from an independent sales representative. There isn’t any investment upfront of effort or money since they’re paid on commission. They get paid when the company does, and they can both build and grow the business together. A good agreement will list the responsibilities and rights of the company. Verbal agreements can cause ill will and disputes. This is why it’s smart for every party to document their role in writing before starting a business. The product is the foundation of the company, and the agreement will entrust it to a trusted representative.

IHFRA has partnered with Schoenberg Finkel Beederman Bell Glazer, LLC, a leading lawfirm out of Chicago to prepare an Exemplar contract.

Please note – IHFRA does not provide legal advice, and making this exemplar contract available should not be construed as the providing of legal advice by IHFRA or the author of this contract. No Attorney-Client relationship is created by reviewing or making use of this exemplar contract.

This document contains many blank spaces that require careful thought to complete before it can be used, and we highly recommend consuting with an experienced legal counsel before it is utilized.