Sales Representatives

• A sales representative is often called a manufacturer's representative or a sales agent.
  • The term "sales representative" is preferred because the term "agent" has legal connotations in some countries.

• A sales representative:
  • Uses the company's product literature and samples to present the product to potential buyers.
  • Works on a commission basis; essentially acting as a broker.
  • Assumes no risk or responsibility for servicing the product after the sale.

• A contract with a sales representative should state:
  • The period of the agreement.
  • The territory where the sales representative may operate.
  • Whether a sales representative may operate on an exclusive or a nonexclusive basis.
  • That sales representative may sell complementary products that do not conflict.
  • The method compensation.
  • Reasons for terminating the agreeement.
  • Limits on the legal authority of the sales representative to obligate the firm.

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© 2004 John Michael Pierobon

Notes