Historically, independent sales agents and public relations agencies have helped enterprises launch new products. Working in tandem with in-house marketing and sales teams, independent sales agents and marketing organizations facilitate the identification and capture of new clients. Under a contingent and variable cost structure based on completed sales, outsourced sales agents can accelerate rapid growth.
The law governing sales agents, distributors and marketing agencies varies significantly across borders. In France, for example, sales agents are entitled by law to an “indemnity” (severance payment) upon termination by their principals.
Modern sales agency and distribution agreements identify opportunities beyond the mere increase in immediate sales. Indeed, sales agents and distributors need to engage transparently in the overall business strategies of which selling is only an end-result. For this reason, lawyers drafting sales, distribution and marketing agreements should advise their clients not only on the legal and regulatory implications of the relationship, but also the many ways in which such agreements can achieve larger strategic goals.