Product marketing in Brazil by a Commercial Agent, Distributor or Importer
Independent commercial intermediaries
It is sensible to start commercial operations through an agent or distributor when approaching new markets. The agency agreements and representation of a company are regulated by the Law of 10 December 1965. It is assumed that an agent knows his field of activity, potential customers, city and / or region. Using an Agent or a Distributor is less expensive than going through a trading company.
The points to be cautious with
A single agent cannot cover the entire territory. Despite the considerable progress made in transport and home communications, the regional orientation of the economy continues to be important. Depending on the objectives of the company, it would be interesting to have at least one agent in each of the two main business centres. These two centres are Rio and Sao Paulo.
The agents are not always specialized in one type of product. It is recommended to inquire in advance about his area of speciality and products presented by the Agent already.
Motivating an Agent
He received the exclusive distribution of the product once it has demonstrated its sales capabilities in the area concerned.
The Commission Structure
Commission structure(s) concerning the sales needs to be negotiated between the two parties. It is recommended to use a bank that pays the sales revenue to the exporter and the commission to the agent.
Breach of Contract
The content and extent of the agent's work must be specified in the contract. It will be broken in case of misconduct or at the request of both parties.