Growing your business with commission is the way to go. There are simply not enough hours in the day for managing a business, doing the work and growing the business. That is the difficult spot that small business owners find themselves in. You are the person who has the creativity and provides the service and makes the product. Yes, you can make use of Instagram and market your product and service and promote it. Make those followers customers. But we all know that it easier to get referrals from current clients who were very happy with your service. The best thing about referrals are that they are more effective because:
  1. Potential client are being referred to you who are already in the market for your service or product;
  2. Your referral source is a trusted person
  3. Hone in on your ideal client
Commission is another way to increase your client base. Grow your business and make a little extra money.

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The important part with commission is that you have an agreement in place between you and your new agent. You want to be sure that everything is set in stone before you enter into a new business relationship. The most important clauses that you need know about in your commission agreement is:

1. When commission is earned

It is a very easy way to make a little extra money for your agent. But it also grows your business. With commission agreements you need to make sure that the exact moment that commission is earned is clear. This would always be a situation when your potential new client has already concluded an agreement with you AND PAID the first invoice. Or have paid in full. This really depends on the type of service you provide to your clients.  

2. Percentage of commission

Growing your business with commission means that you must make the amount to be earned clear. If it is a percentage, then what is the percentage based on? The full amount excluding VAT? Or which amount? If it is just a straightforward amount it makes it a bit easier. But then your agent is not rewarded for bringing in bigger client.  

3. Acting on your behalf

One of the key aspects of a commission agreement is authorization. The reason is that you do not want your agent to make promises on your behalf. The agent is only there to try and generate sales but not to make decisions for you. It is important that the authorization that the agent has on your behalf is restricted.  

4. Agent not Employee

Probably the most important clause of all – is the fact that your agent is not an employee. As a small business owner you would rather want to have your agent work independently from you. They are only referring work to you when they have the opportunity. The commission being earned is not a salary and the agent should also not see it as such.  


Growing your business with commission is an easy and effective way in which you can start making those limited daily hours of your more. There are definitely things to be on the lookout for. But in general if you have a simple commission agreement in place you should be covered. Have at our commission agreements – short, sweet and to the point.