The Marketing of Products in Turkey with a Sales freelancer, Distributor or Importer
Commercial Agents and Distributors
Turkey is often seen as a resourcing centre. Turkey attracts foreign investment due to its unique trading location between Asia, Europe and the Middle East.
An established local distributor is good entry strategy for small and medium-sized companies. Market knowledge and cultural characteristics are essential to understand in order to have a successful business. The criteria for choosing a commercial agent or not is related to the degree of risk that the company is willing to take.
A distributor positions the products and brands on the market, through advertising and promotion, and assistance after-sales service, which is increasingly important for customers in Turkey.
The points to be careful with
When dealing with government tenders it is necessary to use an agent. Before signing a contract with an agent, one must be sure that reliability of the agent.
For non-Turkish citizens, the Articles of Association must be drawn up legally and conform in line with article 279 of the Turkish Commercial Code.
The certificate needs to be written and signed by the businesses founding members and incorporate the phrase “limited” in the companies trading name. Founders need to state their nationality, full names, surnames, addresses, and trading address. The document has to be officially notarized and translated where necessary.
Motivating an Agent
It is recommended that companies provide written documents for the agents and distributors to help in sales. It goes without saying that building a strong relationship requires human contact.
The Commission Structure
Agency agreements under Turkish law are private contracts between two parties and their stipulations vary according to mutual consent. There are no fixed commission rates. Agency agreements can be for a period of one year and then can be renewed depending on the success of the agent.
Breach of Contract
Article 121 of the Turkish Commercial Code provides that either party may declare termination of an indefinite-term agency contract by giving three months prior notice to the other party. Turkish legal doctrine accepts that this three-month notice period also applies to distribution contracts and this approach is also followed in Turkish legal practice. However, in Turkish legal doctrine there is also a view that supports that the notice period may be extended due to the dynamics of the relationship (i.e. the length of the distribution, the investments made and the nature of the work).