Commission is one part of the assignment

In a mature territory with active demand, clear pricing, and a proven product, commission may compensate an established representative for developing and supporting sales. A new-to-market South African company often needs research, target-list development, samples, events, travel, meetings, and months of follow-up before an order exists.

That is why a market-entry assignment may use a project fee, day rate, monthly retainer, commission, or a mix. The commercial model should reflect the work, travel, uncertainty, sales cycle, and support involved. Not every task fits inside a commission percentage.

Define the commission base precisely

The agreement should explain whether commission is calculated on quoted revenue, invoiced revenue, cash received, net sales after discounts, or another defined base. It should address currency, refunds, bad debt, taxes, freight, samples, returns, cancellations, and repeat orders.

  • Which customers, products, territories, and channels are covered?
  • When is commission earned and when is it paid?
  • How are existing accounts, house accounts, inbound leads, and shared opportunities treated?
  • What happens to open opportunities and repeat orders after termination?

Separate authority from activity

A representative can introduce, communicate, follow up, and support negotiations without having authority to bind the company, change pricing, promise delivery, accept orders, or make technical warranties. Those boundaries should appear in the agreement and in day-to-day instructions.

Measure more than final revenue

In an early-stage market, useful leading indicators include qualified conversations, buyer feedback, sample requests, meetings, proposals, objections, and progress through a defined sales process. These do not replace revenue, but they show whether the market thesis is becoming stronger or weaker.

Independent-contractor, agency, tax, employment, territory, exclusivity, and commission laws vary. The parties should obtain legal and tax advice in the relevant jurisdictions before signing.