Sales and Marketing Employment Agreement

What a good one includes

• A detailed breakdown of the base salary, commission tiers, bonuses, and exactly when a commission is considered earned.
• A robust intellectual property clause ensuring that all copy, designs, campaign strategies, and brand assets created by the employee belong solely to the company.
• Clear language stating that the CRM database, lead lists, and customer relationships developed during employment are confidential company property.
• Enforceable restrictive covenants that prevent the employee from poaching clients or colleagues and, where legally permissible, working for direct competitors for a reasonable period post-employment.
• Explicit definitions of Key Performance Indicators, sales quotas, and evaluation periods so performance expectations are legally documented.
• Precise rules governing how outstanding commissions or pipeline deals are handled if the employee resigns or is terminated.

Common mistakes to avoid

• Leaving the commission structure vague or failing to define exactly when a commission transitions from pending to earned.
• Forgetting to secure explicit ownership of social media accounts, ad accounts, and creative marketing portfolios managed or created by the employee.
• Using overly broad non-compete clauses that are legally unenforceable in the employee's specific state or jurisdiction.
• Failing to address who owns the rights to a client relationship if a sales representative brings their pre-existing rolodex to the company.

Frequently asked questions