A sales representative agreement establishes the relationship between a business and its work force. A business or company’s sales force represents the business to the public. As such, the people that represent the company and its products and or services need to be carefully elected, and an agreement needs to be carefully articulated to represent both parties’ interests. A written agreement of this nature ensures sales representatives are promoting a business’s products and or services to the right people. For Illinois small businesses that are just getting on their feet ,independent sale representatives are likely the best option because they are usually paid on commission and there is no upfront investment because the independent sales rep will be paid as the company gets paid.
A sales representative agreement delineates the company’s rights and responsibilities. It also states the individuals and/or organizations that will represent, and act as advocate for, the business’s products and or services. It is essential that this type of agreement be reduced to writing because oral agreements tend to be vague, and without the ability to be able to refer to writing, confusion and misunderstanding will likely follow.
The terms of a sales representative agreement will depend on whether the business has in-house or independent sales representatives. If the representatives are staff members then the business’s personnel policies will apply. On the other hand, if the agreement is between a company and an independent sales representative, the agreement will not impose its personnel policies and the independent sales representative is not subject to other implied-by-law duties. Because of this, an agreement with an independent sales representative needs to be comprehensive and needs to address all significant aspects of the parties’ working relationship.