The Marketing of Products in Australia with a Sales freelancer, Distributor or Importer
Commercial Agents and Distributors
Regarding the marketing strategy, use of a commercial agent is important, especially for a small or medium business. Quite often, they are exclusive agents for the whole country. They are often indispensable intermediaries.
The points to be careful with
The agent should be selected according to her/his motivation, her/his interest towards the product, the agent’s references and his product portfolio. Additional commercial investments will be required to support the action of the agent: training, catalogues, product samples, etc. Regular communication and reporting system should be set up.
Motivating an Agent
The commission system and the estimated amount of the commission are the essential elements of the agent’s motivation. Control and close contact may be necessary for the proper monitoring of the activity of the agent.
The Commission Structure
The commission of an agent is based on to the turnover s/he achieves. The percentages vary by sector and contract. The amounts vary between 0.5% and 20%. 15% is a commonly used rate.
Breach of Contract
The termination of the agency contract is made on notice. The notice period varies from one to three months. The agent is entitled to compensation if s/he is not the cause of the breach of contract.