Gift Rep Sandy

Posts Tagged ‘Rep Agreement’

The first system to implement in your new business is a standardized or template sales agreement form.  Here are some of the points you need to cover in your template form:

1.  Territory. List the cities, states or regions where you plan to sell.

2.  Type (s) of accounts you intend to service.

3.  Exclusive representation. List clearly if you request an exclusive agreement in your designated territory.  Exclusive representation bare any other sales rep hired by this vendor to sell in your territory.

4.  Commission amount and payments. Agreed upon commission percentages are listed as another line item with instructions as to when and how they are to be paid.  Also, you, as a sales rep, need to keep track of all your commissions due from each company your represent.  You would be surprised how many commissions and payments come up “missing” and reappear after you inquire!

5.  Terms of sale. You need a section clearly stating the terms that you sell to the buyer.  Leaving this part of the agreement as an open form is helpful as every vendor has different terms of sale.

6.  Samples. Most vendors supply sample to you at no charge, but this item needs to be addressed in the agreement.

7.  Product literature. You need to be informed if the vendor has catalogs or product literature you can leave with potential buyers.  These, too, should be supplied at no charge to you and your buyers, but it is good to address this in the agreement.

8.  Incurred expenses. Independent sales reps usually pay their own expenses for gas, lodging, meals, etc.  But other expenses may be shared or paid by the vendor such as trade show expenses or special advertising, etc.

9.  Default or dissolution. Be sure to include a section listing what happens when you no longer rep for a vendor.

10.  Changes to the agreement. Make sure to note that the agreement may be altered ONLY by written notification by either party.  This stipulation will avoid any confusion over verbal comments or agreements.

11.  Signatures and date. Designate a spot at the bottom of the agreement for both you and your vendor to sign and date the agreement