4. Inform the sales manager of any issues affecting the company`s customers in the area of distribution. On average, I check, rework and negotiate three or four recidivism agreements a week. Some are righteous, others are cruel. Based on this experience, I offer 10 tips to consider when you hire a potential new client and check a proposed representative contract: in addition to these main provisions, there are various other clauses, such as choice of law and salvability, that you should include, so talk to your lawyer before concluding your sales contract. If the representative takes the time to read, understand, question and, yes, even negotiate the terms of a representation agreement at the beginning, there should be no surprises and hopefully no problems. This is the difference between fire safety and extinguishing a raging fire. But too often, sales reps learn belatedly that their multi-year contracts can be terminated with a 30-day period, that they do not receive commissions after termination, or that their procuring entity has the right to unilaterally modify the representation agreement, including by reducing commission rates. 3. Make sure the contract correctly states who you are and what you are going to do – you are an independent commercial agent, not a broker, agent, trader. Most independent salespeople do not sell products.
They advertise and encourage the sale of products sold by their principals. The contract should not require you to sell products in a region or increase sales. Sometimes, despite your best efforts, you can`t. Such a provision may offer a contractor an apology to terminate the contract “for a material reason”, which could offer the payer an apology not only to terminate the contract, but also to withhold commissions or commissions after termination. Depending on the situation, the representative may also not be reimbursed for the cost of labour. The agreement should indicate whether the costs of a representative can be reimbursed and provide for possible restrictions on eligible costs. The agreement should also specify when the representative would receive compensation for his or her work. As a rule, commissions are paid only after the product has been sent to the customer.
Commissions may not be paid to the representative. 1. Make your deal first – The essential terms of the representation agreement should come as no surprise.