The Commission Based Consulting Agreement is designed for Australian businesses engaging consultants on a commission or success-fee basis. This document is particularly relevant when organizations seek to formalize relationships with external consultants who will be compensated based on specific achievements, sales, or other measurable outcomes. The agreement ensures compliance with Australian federal and state legislation, including the Independent Contractors Act 2006, tax regulations, and fair trading laws. It provides comprehensive coverage of essential elements such as service scope, commission calculations, performance metrics, confidentiality, and intellectual property rights, while maintaining the independent contractor status of the consultant. This template is adaptable across various industries and consulting arrangements, making it suitable for both short-term projects and ongoing consulting relationships.
Commission Based Consulting Agreement Template for Australia
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Key Requirements PROMPT example:
Commission Based Consulting Agreement
"I need a Commission Based Consulting Agreement for engaging a software sales consultant in Australia, with a tiered commission structure starting at 5% for the first $100,000 in sales and increasing to 8% above that threshold, including specific KPIs for minimum monthly client meetings."
1. Parties: Identification of the principal company and the consultant
2. Background: Context of the agreement and brief description of the business relationship
3. Definitions and Interpretation: Key terms used throughout the agreement and rules for interpretation
4. Appointment and Term: Formal appointment of consultant and duration of the agreement
5. Nature of Relationship: Clarification of independent contractor status and not employment
6. Consultant's Services: Detailed description of services to be provided
7. Commission Structure: Base rates, calculation methods, and payment terms for commissions
8. Performance Standards: Expected service levels and quality standards
9. Compliance and Reporting: Regulatory compliance requirements and reporting obligations
10. Confidentiality: Protection of confidential information and trade secrets
11. Intellectual Property: Ownership and rights to created IP during the engagement
12. Insurance and Liability: Required insurance coverage and limitation of liability provisions
13. Termination: Grounds and process for ending the agreement
14. Post-Termination Obligations: Continuing obligations after agreement ends
15. General Provisions: Standard boilerplate clauses including notices, governing law, etc.
1. Non-Compete: Restrictions on competing activities - include when protecting market position is crucial
2. Training and Support: Details of training provided - include when specific training is required
3. Expenses: Rules for expense reimbursement - include when consultant may incur reimbursable expenses
4. Performance Targets: Specific KPIs and targets - include when commission tiers are performance-based
5. Dispute Resolution: Detailed dispute resolution procedures - include for high-value or complex arrangements
6. Territory Rights: Geographic or client territory definitions - include when territories are exclusively assigned
7. Force Majeure: Provisions for unforeseen circumstances - include for long-term or high-risk engagements
1. Schedule 1 - Services Description: Detailed scope of services and deliverables
2. Schedule 2 - Commission Rates and Calculations: Detailed commission structures, tiers, and calculation methods
3. Schedule 3 - Reporting Ƶ: Standard forms for activity and commission reporting
4. Schedule 4 - Performance Metrics: Specific KPIs and measurement criteria
5. Schedule 5 - Insurance Requirements: Detailed insurance types and coverage levels required
6. Appendix A - Compliance Procedures: Regulatory compliance requirements and procedures
7. Appendix B - Confidentiality Agreement: Detailed confidentiality terms and requirements
Authors
Relevant legal definitions
Clauses
Relevant Industries
Professional Services
Financial Services
Real Estate
Insurance
Technology
Sales and Marketing
Business Development
Management Consulting
Recruitment
Software and IT
Telecommunications
Manufacturing
Distribution
Relevant Teams
Legal
Human Resources
Finance
Commercial
Procurement
Business Development
Sales
Operations
Risk and Compliance
Executive Leadership
Relevant Roles
Business Development Manager
Sales Director
Consulting Partner
Independent Consultant
Commercial Director
Chief Commercial Officer
Procurement Manager
Legal Counsel
HR Director
Finance Manager
Operations Manager
Managing Director
CEO
Contract Administrator
Business Manager
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