Topics

• Many sales rep agreements cover topics such as sales territory, product prices, bonus, commission, confidentiality, marketing materials and termination. A noncompete clause provides protection for the company when the sales representative no longer works there. It prevents him from doing the same job for a competitor.
  
  

Company Loyalty

• Independent sales reps often have little company loyalty, and often don't consider themselves part of the company work force. A fair agreement that binds them tighter to the company lessens the chance they'll leave, taking their clients with them.
  
  

Performance

• An agreement with built-in metrics allows both the sales rep and the company to measure performance. The company uses metrics to discipline or counsel a salesperson who doesn't meet selling expectations, or who violates other agreed-upon procedures.