Sales representative agreement

The best way to ensure that the sales representative acts as agreed is to have a well-balanced and fair agreement. It is vital to align the interests of the parties through the remuneration structure and other provisions. This way, both sides know what to expect and what they can or cannot do within the relationship.

A sales representative agreement establishes the terms between an external sales agent and a company. It is often used when exploring new markets where a company has little experience or contacts. The agreement aligns interests and defines the representative's rights, obligations and the boundaries within which the representative can act on behalf of the company.

Key clauses include: the autonomy and competence granted to the representative; remuneration and commission structures; rules on use of brand elements and trade names; sales targets; which products are covered and in which territories; the term of the agreement and termination conditions; and exclusivity, confidentiality and non-compete obligations.

You need to decide how much competence and power to give the representative. Remuneration is often underestimated — investing time here to align interests pays off significantly. The agreement should draw a clear picture of the collaboration so both sides know what success looks like and what happens if targets are missed.

Yes. We draft your first agreement so it can be adapted into a reusable template for subsequent representatives. This lets your team onboard new agents without always involving legal counsel, keeping your legal costs low and your processes scalable.

Our all-in-one package includes a kick-off call with a contracts expert to discuss your setup and use cases, a bespoke first draft, and two feedback rounds where we incorporate your comments and adjustments. Pricing tiers are available on our contracts pricing page.