WHAT IS A SALE AGENT AGREEMENT? 

A Sales Agent Agreement is a contract that establishes the terms and conditions by which a sales agent will provide services to the company as an independent contractor. The agreement will clearly state that the agent is not an employee and is not entitled to employee benefits. As an agent the agreement allows the sales agent to act on behalf of the company and exercise a certain amount of judgment and discretion not usually given to employees.

WHEN DO YOU NEED A SALES AGENT AGREEMENT?

A Sales Agent Agreement is needed to help the company expand its territory without incurring the additional expenditures associated with hiring new employees. The agreement is needed to explain the terms, territories, conditions and commission requirements that the sales agent and company will be bound by.

WHAT IS INCLUDED IN A SALES AGENT AGREEMENT?

A Sale Agent Agreement should include the following:

• Names and information of the parties.

• A statement that the agent is an independent contractor and is not an employee and therefore is not eligible for the usual employee benefits.

• A comprehensive description of the services that the sales agent will provide for the company.

• Details regarding marketing tools and or strategy the agent will employ on behalf of the company.

• A statement explaining any quotas if applicable.

• A statement that explains that the agreement is contingent upon the agent obtaining and maintaining all licenses, certifications and continued training required in order to legally provide his or her services to the company.

• Restrictive clauses as to what group of customers or region to which the agent can sell.

• A statement regarding circumstances in which the agent may be liable to the company for the payment of damages.

• A detailed explanation of the type of commission the agent will receive as well as the formula for calculating the amount of the commission.

• Explanation of termination of the agency relationship.