Disadvantages Of A Sales Agency
When someone wants to increase the sales of their products or services either in home or abroad, then appointing a sales agent is very important. A sales agent is a person who has the accurate quality and experience of find customers for you. For this service they get commission on sales that you make to those customers. Thus selling a product through an overseas agent is one of most cost effective way.
An agent is a person who is authorized or appointed by a manufacturer to sell or distribute his products within a given territory but who is in business for himself, takes title to the goods, and does not act as agent for a principal. Agents create a legal relationship with a third party. Commercial agents enjoy substantial legal protections which are unlike those given to employees. These are set out in the Commercial Agents (Council Directive) Regulations, which were introduced in 1993 to bring the law of agency in the UK into line with other EU member states.
Always remember that if the agent is working in another member state, you may need to consider that country 's equivalent legislation.
Once you have decided to appoint a sales agent either in your own country or overseas, you must be sure to have the terms agreed in writing. A good contract will protect you against disputes or loose sales.
Advantages of appointing a sales agent
Eliminate sales force maintenance expenses: When you appoint an employee as a sales person then the travel expenses and phone expenses
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