Sales Agency Agreement Template

SALES AGENCY AGREEMENT TEMPLATE FAQ

What is a sales agency agreement?

A Sales Agency Agreement is a contract where a company appoints an independent sales agent to solicit orders or introduce customers for the company’s products or services. It defines the agent’s authority, territory, sales activities, and how commissions are earned and paid.

How is a sales agent different from a distributor or reseller?

A sales agent typically does not buy and resell products. The company usually contracts directly with the customer and fulfills the order, while the agent earns a commission for sales or referrals. A distributor/reseller typically purchases products and resells them in their own name.

What should be included in a sales agency agreement?

Key terms include: appointment and authority limits, territory and target customers, lead registration/customer ownership, commission structure and when it’s earned, payment timing, expenses, non-solicitation or non-compete (optional), confidentiality, compliance, term and termination, and post-termination commissions.

How do you define when a commission is earned?

Many agreements state that commission is earned only after the company receives payment from the customer, and that refunds or chargebacks can reduce commissions. This template includes selectable options for when commissions are earned.

Can you include exclusivity?

Yes, optionally. Some agencies receive exclusive rights for a territory or market segment, usually tied to performance targets. This template includes a non-exclusive default with an optional exclusivity clause.

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