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Sales Development Representative Agreement

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SALES DEVELOPMENT REPRESENTATIVE AGREEMENT

This Sales Development Representative Agreement ("Agreement") is entered into as of by and between:

WHEREAS

WHEREAS, Company is engaged in the business of offering products and services described herein and desires to identify, develop and convert qualified sales opportunities; and

WHEREAS, Representative has expertise and experience in sales development activities and is willing to perform such services for Company on the terms and conditions set forth in this Agreement; and

WHEREAS, the parties desire to set forth the scope of Representative's activities, compensation, confidentiality obligations and other terms governing their relationship.

1. SCOPE OF WORK

Representative shall perform sales development services reasonably assigned by Company, which may include lead qualification, outbound prospecting, appointment setting, market research, CRM updates and handoff to Account Executives ("Services"). Representative shall use commercially reasonable efforts to perform the Services in a professional manner and in the best interests of Company.

2. COMPENSATION AND PAYMENT TERMS

Company shall compensate Representative as follows. Payment shall be made in U.S. dollars and subject to applicable withholding where required by law.

In the event any payment due to Representative is more than days past due, Company shall pay a late fee of per month on the outstanding amount, together with any collection costs and reasonable attorneys' fees incurred by Representative in enforcing payment.

3. TERM AND TERMINATION

This Agreement shall commence on and shall continue until unless earlier terminated in accordance with this Section.

Either party may terminate this Agreement without cause upon written notice to the other party delivered at least days prior to the effective date of termination. Company may terminate for cause immediately upon written notice if Representative materially breaches any provision of this Agreement and fails to cure within 10 days after receipt of written notice of such breach.

Upon termination, Representative shall promptly deliver to Company all materials, work product, leads, contact information and other property of Company and shall be entitled only to compensation earned and payable as of the effective date of termination, subject to any applicable clawback provisions expressly set forth in this Agreement.

4. CONFIDENTIALITY

"Confidential Information" means all non-public information disclosed by Company to Representative, whether orally, in writing or by inspection of tangible objects, including but not limited to customer lists, pricing, product roadmaps, business plans, marketing strategies, sales pipelines and technical information. Confidential Information does not include information that: (a) is or becomes generally known to the public through no fault of Representative; (b) was rightfully known to Representative prior to its disclosure by Company; (c) is rightfully obtained by Representative from a third party without breach of an obligation of confidentiality; or (d) is independently developed by Representative without use of Company's Confidential Information.

Representative shall (i) hold Confidential Information in strict confidence, (ii) not disclose Confidential Information to any third party except as required to perform Services under this Agreement and subject to written confidentiality obligations at least as protective as those herein, and (iii) not use Confidential Information for any purpose other than performing the Services. These obligations shall survive termination of this Agreement for a period of two (2) years, except for trade secrets which shall remain protected for as long as they qualify as trade secrets under applicable law.

5. INDEPENDENT CONTRACTOR

Representative acknowledges and agrees that Representative is an independent contractor and not an employee, agent, partner or joint venturer of Company. Representative is solely responsible for all taxes, insurance, benefits and other obligations arising from the performance of the Services. Representative shall have no authority to bind Company except as expressly authorized in writing.

6. NON-SOLICITATION

During the Term and for a period of six (6) months following termination, Representative shall not, directly or indirectly, solicit or attempt to solicit any customer or employee of Company with whom Representative had material contact in the twelve (12) months prior to termination, for the purpose of providing products or services that are competitive with those offered by Company.

7. INTELLECTUAL PROPERTY; WORK PRODUCT

All work product, inventions, discoveries, developments, data, reports, software and materials created by Representative in connection with the Services (collectively, "Work Product") shall be the exclusive property of Company. Representative hereby assigns to Company all right, title and interest in and to the Work Product and shall execute such documents as may be necessary to effectuate such assignment.

8. WARRANTIES; INDEMNITY

Representative represents and warrants that (a) Representative has the right to enter into this Agreement; (b) the Services will be performed in a professional and workmanlike manner; and (c) Representative's performance will not infringe third-party rights. Representative shall indemnify, defend and hold Company harmless from and against any losses, liabilities, damages and expenses arising from Representative's breach of this Agreement, negligence, willful misconduct or infringement of third-party rights.

9. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the state of without regard to conflict of laws principles. The parties submit to the exclusive jurisdiction of the courts located in that state for any dispute arising under this Agreement.

10. ENTIRE AGREEMENT; AMENDMENT

This Agreement, together with any written exhibits or schedules attached hereto, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, whether written or oral. No amendment or waiver shall be effective unless in writing and signed by both parties.

11. SEVERABILITY; REMEDIES

If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect. The parties acknowledge that monetary damages may be inadequate to remedy certain breaches and agree that either party may seek injunctive relief or specific performance in addition to any other remedies available at law or in equity.

12. NOTICES

All notices required or permitted hereunder shall be in writing and shall be deemed given when delivered personally, sent by nationally recognized overnight courier, or sent by certified mail, return receipt requested, to the addresses set forth above or to such other address as a party may designate by notice delivered pursuant to this Section.

SIGNATURES

Company

Printed Name:

By:

Date:

Representative

Printed Name:

By:

Date:

Enter text✕

What a Sales Development Representative Agreement Covers

A Sales Development Representative Agreement is a written contract that defines the relationship between an employer and an SDR responsible for lead generation, prospect qualification, and early-stage sales outreach. It sets out duties, territories, commission and incentive structures, employment status (employee, contractor), confidentiality and IP ownership, non-solicitation or non-compete restrictions where permitted, performance metrics, and termination rules. The agreement clarifies who bears expense and training costs, how metrics are measured, and what records or reports the SDR must provide to support commission payments and audits.

Why a Clear SDR Agreement Matters

A clear agreement reduces disputes over pay, territory, and responsibilities while aligning expectations for quota, lead ownership, and handoff to account executives. It also documents compliance with wage and classification rules, confidentiality protections, and intellectual property assignment obligations.

Why a Clear SDR Agreement Matters

Who Typically Uses This Agreement

Companies hiring SDRs, independent contractors, or agencies use this agreement to set sales processes and compensation terms.

  • Small and mid-size businesses hiring their first SDR team to codify commissions and territories.
  • Enterprise sales operations standardizing SDR quotas, lead routing, and integration with CRM systems.
  • Recruiting agencies or contractors who need clear scope, deliverables, and payment milestones.

Recruiters, HR, sales operations, and contracting legal teams commonly complete or review the form before onboarding or supplier engagements.

Typical Signers and Their Roles

Sales Manager

Responsible for approving territory, quota, and commission schedules. The manager signs to confirm acceptance of performance metrics, reporting cadence, and escalation paths for disputed commissions or lead ownership issues.

SDR / Contractor

The individual contributor signs to accept duties, confidentiality, IP assignment, and payment terms. For contractors, signature confirms independent contractor status, invoicing procedures, and any expense reimbursement rules.

Essential Sections to Include in the Agreement

A professional Sales Development Representative Agreement organizes terms into discrete sections so responsibilities, pay, and legal protections are unambiguous and enforceable across jurisdictions.

Scope of Work

Describe specific SDR activities such as cold outreach, lead qualification criteria, use of CRM, accepted contact methods, and lead handoff procedures to account executives or closers.

Compensation

Detail base salary (if any), commission rates, acceleration or clawback rules, timing and manner of payment, and conditions for commission eligibility including quota attainment and verified opportunities.

Term and Termination

State contract start date, notice periods, termination for cause, termination without cause, post-termination obligations, and any severance or final commission calculation procedures.

Confidentiality & IP

Define confidential information, duration of confidentiality obligations, and assignment of inventions or work product created during the engagement to the employer or client.

Compliance & Classification

Confirm employment status (employee vs contractor), applicable wage laws, expense reimbursement procedure, and any training or certification requirements.

Dispute Resolution

Specify governing law, venue or arbitration, remedies for breach, and any liquidated damages or injunctive relief for misappropriation of leads or confidential data.

Step-by-Step: Completing and Executing the Agreement

Follow these sequential steps to prepare, review, and sign the SDR agreement to minimize onboarding delays and legal risk.

  • 01
    Prepare Draft: Populate parties, effective date, territory, and compensation fields.
  • 02
    Internal Review: Have HR and legal confirm classification and compliance.
  • 03
    Signatures: Collect signatures from authorized signers with dates and titles.
  • 04
    Distribution: Provide executed copies and upload to an approved contract repository.

Digital Workflow Configuration for Online Completion

Configure a signing workflow that matches your approval chain and preserves an audit trail for every execution step.

Field Mapping Map name, date, and signature fields to CRM contact records.
Signer Order Set sequential or parallel signing based on internal approvals.
Authentication Choose email link, SMS code, or higher assurance for sensitive roles.
Notifications Enable reminders and completion alerts for pending signers.
Storage Auto-save executed PDF to secure repository and CRM.

Where to Send and Store the Signed Agreement

Identify the final distribution destinations and retention systems to ensure accessibility for payroll, tax, and compliance audits.

  • Payroll: Send to payroll or AP for commission setup and withholding.
  • HR File: Store executed agreement in the employee or contractor personnel file.
  • CRM: Attach signed agreement to the SDR contact or user record.
  • Legal Repository: Archive in a secured contract management system for auditability.

Technical Requirements for Digital Execution

Ensure the chosen platform generates an auditable certificate of completion and retains tamper-evident signed copies to meet ESIGN and UETA recordkeeping requirements.

  • Integrations: Salesforce, NetSuite, Microsoft 365 supported
  • File Types: PDF, DOCX accepted for upload
  • Authentication: Email link, SMS, KBA options

Essential Data Elements and Security Considerations

Personal Data: Full name, address, SSN/TIN where required
Payment Details: Bank or payroll ID for commission disbursement
Employment Dates: Start, termination, and review dates
Confidential Info: Customer lists and lead ownership data
Access Controls: Role-based access to signed files
Encryption: TLS 1.2/1.3 in transit, AES-256 at rest

Key Dates and Deadlines to Track

Track contractual and operational deadlines to ensure timely onboarding, commission payments, and statutory filings.

Effective and Start Date:

Enter exact MM/DD/YYYY; triggers payroll and benefits

Probation or Review:

Define review period and performance checkpoints

Commission Payout Dates:

Specify monthly or quarterly payout deadlines

Termination Notice:

State required notice period for either party

Record Retention Trigger:

Set archival date based on termination or contract expiration

Milestone Timeline for Onboarding and Payments

A sequential milestone timeline helps coordinate hiring, CRM setup, training, and first commission calculations.

01

Offer Acceptance

Signed agreement returned and countersigned by employer

02

System Setup

Create CRM user and commission plan entries

03

Training Completion

Complete mandatory sales and compliance training modules

04

First Payout

Commission calculation and payment after verification period

Common Errors to Avoid

  • Leaving compensation vague or using subjective performance measures that later cause disputes over commission eligibility or clawbacks.
  • Failing to specify lead ownership and CRM rules, which creates duplicate pursuit and conflicting commission claims between SDRs and AEs.
  • Misclassifying workers as contractors when duties, supervision, and scheduling indicate employee status under wage and hour laws.
  • Omitting signature authority or failing to obtain an authorized company officer signature, risking unenforceability or payment delays.

Consequences of Incomplete or Incorrect Agreements

Tax Penalties: Incorrect reporting risks IRC §6721 penalties for information returns
Wage Violations: Misclassification can trigger FLSA or state wage claims
Commission Disputes: Ambiguous terms lead to litigation and financial exposure
Confidentiality Breach: Loss of trade secrets and injunctive relief claims
Contract Unenforceable: Lack of authority or improper signatures may void terms
HIPAA Exposure: Improper handling of PHI requires a BAA and safeguards

Practical Tips for Accurate Agreement Completion

Adopt standardized clauses and an approval checklist to reduce negotiation time and increase consistency across hires.

Use Clear Compensation Tables
Present commission formulas, thresholds, and illustrative examples to reduce ambiguity and disputes over calculations.
Define Lead Ownership Rules
Specify lead creation timestamps, qualification criteria, and handoff rules to prevent cross-claims.
Confirm Signatory Authority
Ensure the signer is authorized to bind the employer or attach an approval from authorized officer.
Maintain Audit Trail
Store executed agreements with signed PDFs and metadata for later verification and audits.

Real-World Examples of SDR Agreement Use

Below are brief, practical examples of how organizations apply SDR agreements to reduce friction and document expectations.

Small SaaS Hire

A startup added a clear commission table and territory map to eliminate disputes over inbound leads.

  • This reduced payroll errors.
  • After implementing the template, the company recorded fewer commission recalculations and a cleaner payroll audit trail.

Agency Contractor

An outsourced agency contract defined deliverables, volume targets, and payment milestones.

  • It included IP assignment.
  • The arrangement prevented ownership disputes when qualified leads converted and allowed seamless CRM integration with lead source tagging.

eSignature Vendor Comparison for Executing Agreements

Compare common eSignature vendors on starting price, trial availability, bulk sending capability, audit trail presence, HIPAA readiness, and envelope limits to choose an appropriate execution platform.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial, no credit card Varies by vendor Varies by vendor Varies by vendor Varies by vendor
Bulk Send Yes — Business Premium includes bulk send Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes (BAA required) Yes Yes No No
Envelope Cap No envelope cap 100 envelopes/user/year Varies Varies Varies

Frequently Asked Questions and Troubleshooting

Common questions about enforceability, signatures, amendments, and electronic execution are addressed below to aid correct completion and filing.


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