Request Letter from Agent for Increase in Commission Rate

A business organization or a proprietary concern could be the agent of a company for selling goods or rendering services on its behalf. Such agents get commission at a certain percentage on the billing amount paid by the consumer. This commission rate does not always remain the same.

Sometimes the company increases the commission rate on their own and some other times the agent has to request an increase in the commission rate.

The agent should evaluate his performance level before requesting for a hike in commission rate. Sometimes, this creates unnecessary conflicts among the parties.

Hence, it is important that the request letter from the agent's side should be drafted in a very polite way, yet in a very logical way, so that it should sound more convincing for being eligible for a hike.

Following format can be suitably modified for the use.

TEMPLATE

Ref: .......................

Date: ......................

From

(Name of the Agent)

(Agency Number)

(Full Address)

(Phone Number)

(Email Id)

To

(Name of the Officer)

(Designation)

(Name of the Company)

(Address)

(Phone Number)

Sub.: Request for increase in commission rate

Dear Sir/Madam,

Greetings of the day!

I hope you are doing well. It has been quite some time since we have met. Sorry, due to work pressure I have not been able to find time to come visit you to discuss the business prospects and other things.

At the outset, I would like to thank your company for giving our business an opportunity to sell your products and services. It has been over .... years since we have been a loyal agent of your company. The brand has earned a good reputation in the market and we are happy to market the products sincerely.

However, we are concerned about the current rate of commission paid to us by your company. In the last .... years, the commission rates stand the same at ....%. The current market trend for commission rate in our industry is in the range of .... - .... %. You would appreciate that we had not raised any concerns regarding the commission rate for the last .... years, which is a long period.

We have also been sponsoring our own marketing and advertising campaigns in certain localities and through online mediums for the increase in popularity of products targeting specific categories of prospective customers. In order to increase the sales we have also been employing more sales personnel. The additional costs for this purpose are coming out of our profits and hence the cost burden is becoming heavier on us.

In the past .... years, we are proud to say that we have achieved the given sales targets for most of the months except for only .... months, which were only ....% lower than targets. Our sales figures for your brand products are stably growing despite cut-throat-competition in the market.

As such, we would like to request your goodself to consider our submissions as mentioned above and approve an increase in rate by ....%. This would come as a great encouragement in ramping up the sales more vigorously. It would help us in growing the business.

We shall be grateful to you for your kind consideration on our request.

Thanking you!

Yours faithfully,

   (signature)

(Name of the Agent)