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Become a sales agent and act as an intermediary for suppliers

As a commercial agent, you act as an intermediary in your own home market for (foreign) suppliers: you establish contacts and sell their products, without having to purchase expensive inventory yourself or run significant risk. You act as an intermediary for...

Published on April 17, 2023 by MKBjuristen.nl
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As a commercial agent, you act as an intermediary for (foreign) suppliers in your own home market: you establish contacts and sell their products, without having to purchase expensive inventory yourself or run significant risks. You act as an intermediary for the supplier (the principal) and receive a commission for this. It is a flexible, low-capital way of doing business — provided you maintain your independence and establish clear agreements. Below, you can read everything about starting as a commercial agent.

What is a commercial agent?

A commercial agent is an intermediary who mediates between (foreign) suppliers and (potential) buyers in a specific market. You do not purchase products yourself, but skillfully bring supply and demand together. The supplier is called the principal; you act as their representative and receive a commission for this. The principal remains the owner of the products and determines the selling price.

Note: maintain your independence

If you work as a commercial agent for only one principal, the Tax and Customs Administration may classify this as employment, with far-reaching consequences. Therefore, ensure sufficient diversity in your activities and safeguard your independence. TODO_VERIFY: the assessment of independence (false self-employment) is evolving — have your situation reviewed.

What is the difference between a sales agent and an importer?

The main difference lies in ownership and risk:

  • A commercial agent purchases nothing, builds up no stock, and receives commission; the principal remains the owner and determines the price;
  • An importer purchases products for his own account and risk, builds up stock, and determines his own profit margin.

Benefits of starting as a sales agent

  • more flexible than an importer: no inventory, therefore less risk and less capital required;
  • less dependent on a single product: you can work for multiple suppliers and diversify;
  • A lot of freedom in managing your time.

The downside: your profit may be more limited than if you were to import and sell yourself. Starting as a sales agent or as an importer therefore each has its own advantages and disadvantages; weigh the options carefully.

Which agreement do you need as a commercial agent?

Make clear agreements with the principal via an agency agreement. In it, you stipulate, among other things:

  • the committee;
  • the duration of the agreement and the notice period;
  • potential exclusivity and the region in which you may work.

The agency agreement is regulated by law and provides (partially mandatory) protection for the agent, for example in the event of termination. Therefore, have the agreement drafted by a specialist.

Frequently Asked Questions

Does a sales agent purchase products himself?

No. You only act as an intermediary and receive a commission. The principal remains the owner of the products and determines the selling price.

What is the risk if I work for only one principal?

In that case, the Tax and Customs Administration might view the relationship as employment. Ensure sufficient diversity and independence to limit that risk.

How much does a sales agent earn?

You receive commission on the sales you generate. The profit may be lower than with importing, but you also run less risk and do not have to finance inventory.

Do I need a contract with the supplier?

Yes, an agency agreement. In it, you specify the commission, duration, notice period, exclusivity, and region.

Starting as a sales agent? Have your contract drafted

Starting as a commercial agent involves many aspects. We draft your agency agreement, with sound terms to prevent problems, and advise you on your independence.

View our expertise agency or schedule a no-obligation intake meeting.

Please note: an article provides general information, but your legal situation may turn out differently.

A contract, conflict, or legal risk must always be assessed based on the facts, documents, evidentiary position, and interests. Are you in doubt? Have your situation assessed before you act.

Legal question regarding this article?

A blog provides explanation, but your situation often requires a concrete legal choice. MKB Juristen helps entrepreneurs with contracts, terms and conditions, GDPR documents, employment documents, disputes, and customized legal solutions.

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