Sales Representative Agreement Definition
4. Inform the sales manager of any problems that affect the company`s customers in the distribution area. 6. Keep in touch with the company by phone, email or other agreed-upon means of communication at an appropriate frequency to discuss sales activities in the area. The agreement should also indicate how often your company will send statements to the representative about the status of the commission account and will give the representative some time to object to the content of the statement. 8. Immediately return to the representative all documents and samples provided by the Company if any of the parties terminates this contract. 5. Give the representative 30 days if the company wishes to terminate the contract. 7. Providing a 30-day period for the company if the agent intends to terminate the contract. 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. Finally, the agreement should specify what a representative should do after the termination. The agreement should require agents to stop presenting themselves as representatives of the company and to return the equipment provided by the company. A significant portion of each representative agreement explains how the representative is paid. The agreement should determine how the commission is calculated, the basis of the commissions and that it is the only compensation that the representative will receive apart from bonuses or other incentives.
A sales agent usually checks a trade agreement twice – at the beginning of his relationship with a new client, and then at the end. They may also include a non-competition clause that prevents the employee from working for a competitor until a reasonable period of time expires.