Conquering a new market with a sales agent

A commercial agent helps you enter a new market quickly and efficiently: he acts as an intermediary, knows the market, and uses his network to win customers for you. It is crucial that you formalize the partnership in a legally sound agency agreement, with clear arrangements regarding duties, commission, notice periods, and compensation upon termination. Below, you will find the benefits, legal considerations, and alternatives.

What is a commercial agent?

A sales agent is a person or organization that acts as an intermediary between your company and the customer. It is someone who knows the market well and is strong in establishing and maintaining contacts. By engaging a sales agent, you gain quick access to new customers and markets without investing much time yourself — you benefit from their network to increase your revenue.

The benefits of a sales agent

• fast, efficient access to new customers and markets;
• benefit from the agent's existing network;
• limited personal investment in time and setup;
• useful when you want to operate abroad but are not yet familiar with the local laws and regulations or business culture.

Legal aspects of an agency agreement

It is important that you are aware of the legal aspects of an agency agreement. In any case, pay attention to:

• a clear, watertight agreement outlining the agent's duties, responsibilities, and compensation;
• agreements regarding the duration of the agreement and the notice periods;
• what the commercial agent receives upon termination of the agreement (such as customer compensation);
• a suitable commission scheme.

The agency agreement is regulated by law in the Civil Code and is based on European Directive 86/653/EEC. Many of these rules are protective of the agent and partly mandatory, meaning you cannot simply deviate from them. TODO_VERIFY: the precise statutory provisions (such as customer compensation and notice periods) are detailed — have your agreement reviewed against these.

Alternatives to a commercial agent

A sales agent is not the only way to enter a new market. Alternatives are:

• open an office or branch in the other country yourself;
• work with a dealer or reseller.

Which solution best suits your needs depends on the market in which you wish to operate. If in doubt, legal advice is recommended, as the legal consequences vary significantly depending on the specific form.

Frequently Asked Questions

What is the difference between a sales agent and a dealer or reseller?

A commercial agent acts as an intermediary on your behalf and generally does not enter into agreements with customers themselves, whereas a dealer or reseller purchases and resells for their own account and risk. The legal consequences differ significantly.

Is a commercial agent entitled to compensation upon termination?

Often, yes. The agency arrangement grants client compensation upon termination under certain conditions. Document this carefully and have it legally reviewed.

Is there mandatory law applicable to agency agreements?

Yes, partly. The rules in the Civil Code (based on the European directive) protect the commercial agent and are partly mandatory, so you cannot simply deviate from them.

Is a commercial agent suitable for abroad?

Often yes, precisely because the agent knows the local market, regulations, and business culture. Do take into account the applicable law and the competent court.

Making the right choice when entering the market?

Whether you choose a sales agent, dealer, or your own branch, properly handling the legal aspects is essential. We draft a clear, watertight agreement and advise you on the best solution for your situation.

View our agency agreement or our expertise in contract law, and schedule a no-obligation intake consultation.