Sending a sales agent or distributor agreement.
Exporters, manufacturers and wholesalers often sell through agents and distributors: a rep covering the South Island, a distributor in Melbourne, an agent in California. The agreement sets the territory, the products and the commission or margin. Here is how to send your own agreement to a partner wherever they are.
Agent or distributor
The two are different arrangements. An agent finds customers and earns commission while you sell directly; a distributor buys stock from you and resells it. Your agreement will reflect which you mean, and the fields you need differ a little. This guide is about trade agents and distributors of goods, not real estate agency agreements, which follow their own forms.
Schedules that change per partner
The main terms are often the same for every partner, while the schedules change. Keep your standard terms in the template and add the schedules for each partner before sending.
- A territory schedule, such as a region of New Zealand or an export market.
- A product schedule listing the ranges covered.
- Commission rates or a margin structure.
- Sales targets, with a date field for each review point.
- A tick box confirming exclusivity, if the territory is exclusive.
Signing across time zones
An offshore distributor can sign overnight on a phone or computer, with no account to create. Your managing director signs the next morning, last in an ordered envelope, so your business commits only after the partner has. If the partner wants to understand the agreement in plain terms first, document summaries give them an overview before they sign.
Internal checks
Commission and exclusivity are commercial decisions. Many businesses have the export or sales manager approve each agreement before it goes out, so a territory is not promised twice. Add them as an approver at the start of the envelope. Copy in finance, who will need the commission schedule when the agent's first commission claim arrives, and logistics, who will need the distributor's delivery details.
Renewals and target reviews
Agency and distribution agreements are often reviewed against targets after a term. When it is time to renew or change the schedules, compare the old and new versions to see every change in plain language, then send the new schedule as its own envelope. The previous agreement, its completion certificate and its audit trail stay as they were.
Common questions
- Can an overseas distributor sign without an account?
- Yes. They open a secure link in any browser and sign there.
- Can our sales manager approve the territory first?
- Yes. Add them as an approver at the start of the envelope.
- Does this work for real estate agency agreements?
- This guide is about trade agents and distributors. Real estate agency agreements follow their own forms.