April 8, 2021
4. The determination of the commission must be clear and not be unnecessarily enthet – being paid is what it is all about. So make sure you get paid for your successful efforts. If you are an exclusive representative, which means that you have an exclusive domain or account responsibility, you should receive a commission on all sales in the territory. Commissions should not be contingent on your “satisfactory” service performance. Avoid Rep agreements that you designate as exclusive representatives or with exclusive territory that also bind commissions only to sales you have obtained or requested or that result from your efforts. Such a language is diametrically opposed to a legitimate exclusive domain. 1. Make your deal first, the essential conditions of the De Rep agreement should not come as a surprise. You should reflect what you have already discussed and agreed with the potential customer. Will you be an exclusive or non-exclusive representative? What is your territory? Will the term of your contract be extended for a specified period or will it be automatically extended and continued until termination? What is the commission rate? All of these issues must be addressed and agreed upon before receiving Rep`s approval. To establish a full distribution agreement, you must include the following seven provisions.
Sales staff will trust a large amount of information that their companies wish to keep confidential. The distributor representation agreement should indicate information that a representative cannot share with third parties. This confidential information may include: the company reserves the right to request orders directly from end-users or other retail buyers within the area and sell them directly to them. Rep`s role is to obtain orders from all large potential customers in the territory, including primary equipment manufacturers, distributors, resellers, resellers, telemarketing companies and retail chains, unless otherwise agreed in this agreement. The company appoints Rep as a sales agent for products in the territory and Rep accepts this order.