Monday, 11 January 2010

Build people. People will build the business.




A Manufacturers’ Agent, (or Commission Agent, Sales Agent or Rep [US only]), is someone who sells products or services for a Principal on a Commission basis. The Principal receives and fulfils orders from the Sales Agent, invoices the customer and pays the Sales Agent commission on the orders.

Commercial Agents are recognised under international and UK law following much work by IUCAB and by representations at the Home Office by the MAA. A Sales Agency is normally established by a written agreement or contract. A model agency agreement form for the confirmation of an agency is available from the MAA for £25.00, free to MAA Members and advertisers on request. The MAA also has the International Chamber of Commerce Model Commercial Agents Contract 2nd Edition with CD available at £58 including UK postage – order with your credit card.

Sales Agents are to be found in all spheres of business and are ideal solutions for companies not wishing to have all the costs of a salesman without guaranteed results. Using Commercial Agents fixes sales costs as a percentage of the price. A Sales Agent only gets paid when he sells although the Principal may provide some assistance in a lengthy start up phase. Manufacturers’ Agents have great knowledge of their markets, something a new salesman might take years to acquire.

What is the difference between Manufacturers’ Agents, Sales Agents, Commercial Agents and Sales Reps? Manufacturers’ Agent is a rather old fashioned name (but as it’s our association’s name (the Manufacturers’ Agent’s Association) we’re sticking with it even though many Manufacturers’ Agents now sell for distributors, importers or service providers rather than manufacturers. A Sales Agent is exactly the same as a Commercial Agent but the term “Commercial Agent” is widely used by lawyers and UK & EU legislatures. A Sales Rep in the US is the same as a Sales Agent, a self employed Commercial Agent. However, in the UK, the term “Sales Rep” is used exclusively for employed salesmen. The company employing the Sales Agent is called the Principal in the UK, legally as well as generally, and the Manufacturer in the US.

For Manufacturers’ Agents, Sales Agents or Commercial Agents, the MAA offers a wide range of benefits and support. CLICK HERE to find out more about the Benefits of Membership.

For Principals the MAA offers two low cost services to help find Sales Agents to sell your products. CLICK HERE to go to the Finding a Manufacturers’ Agent page.


No comments:

Post a Comment