- 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.
© 2004 John Michael Pierobon