Marketing of products in Russia by Sales Agents, Distributors or Importers
Independent commercial intermediaries
The Commercial Agent in Russia
You are able to start activities locally at low cost to expand network. Using Independent Sales Specialists allow you to expand to another geographical area with limited risk.
Points to Consider
Due to the size of the territory, it is not common to rely on a single agent, but rather have a distribution network.
False invoices and other irregularities are reported when dealing with Russians. In general, finding a quality partner is not easy and it is necessary to keep a certain level of supervision.
The concept of commercial agent is very present in the Russian business culture.
For the Independent Sales Force, an exclusivity, a fixed-term contract and sales targets are often used in this particular market. There is a need for active monitoring. Physical presence and the development of personal relationships are often not only helpful but needed.
5 to 10% generally, more if the market segment is limited (equipment), less if the volumes are large such as raw materials.
Breach of Contract
The partner has the right to terminate the contract at any time. He must however reimburse the agent for their losses.
In case there is no mentioning in the contract about the time frame of the contract, the agent may terminate with one-month notice.