What is a sales agent?

A sales agent is a sales person that works on a self-employed basis receiving payment in the form of commission for the sales they make when selling on behalf of a business principal.

Who does a sales agent work for?

Sales agents work for themselves. They are responsible for paying their own taxes, national insurance and expenses, and for invoicing the commission they are due to receive from the business principals they have a relationship with. We recommend sales agents use the services of a qualified accountant to ensure they claim the correct expenses and pay the right amount of tax.

Who pays the commission?

The companies that sales agent sell for are called principals. Principals pay the sales agent commission at an agreed rate for closing a sale or other agreed actions such as providing a qualified lead that becomes a customer.

How much commission can sales agents expect to receive?

Commission rates are normally calculated as a percentage of the revenue value of the sale. The percentage can vary depending upon the product, value of a sale, the length of the sales cycle, the profit margins, and whether the sales agent can gain repeat business from the same customer. As a guide, if you are selling low volume high priced items and you have to wait for the sale to go through a long process, then 20% – 30+% is reasonable. Bear in mind you may have to wait longer for your commission and probably put in more work to earn it. High volume, low priced products, such as consumables where there is repeat business, may have a much lower percentage commission because the manufacturer’s profit margins are lower. The large quantities sold can mean the earning potential is high. Commission payments are often negotiable and should be included in your discussions with business principals.

What qualifications do I need?

Unless the product being sold requires a qualification, for example some financial products, you do not need any qualifications to work as a sales agent. If you have qualifications or experience in a sector that can make you more attractive to business principals looking for sales agents. Sales opportunities where a qualification or experience is required or desirable by the principal will always include the information in the advert. Desirable skills for sales agents are: sales skills, self-management and motivation, good written and verbal communication, planning and organising, and the ability to motivate yourself.

How do I find sales opportunities?

Go to the Find Opportunities page (Link required) and search the current advertised opportunities. When you see an opportunity you want to know more about, click to view and you will see the full page advert and how to contact the business principal.

What types of sales opportunities will I find here?

You will find companies advertising for independent self-employed: traditional field sales agents who sell face to face, online sellers, affiliates, lead generators, and telesales, all rewarded by commission.

What should I ask the principal advertising the opportunity?

When you start a dialogue with the principal advertising the opportunity you should include in your questions: - Sales history and current results for the products or services you will be selling. - The number of sales agents they currently have. - The sales results and commission payments their sales agents are achieving. - Ask if you could speak with a sales agent. - Definition of sale for commission purposes, e.g. a signed order, payment of invoice, a qualified lead that closes. - How long after a closed sale will you be paid. - Any exclusive sales area or type of customer. - Competition from other companies.

What is a sales agency agreement?

An agency agreement is a contract between you and the principal, where the terms and conditions of your relationship are agreed in writing. The principal usually provides the agency agreement, but it is important that you read it and understand the terms and conditions. The agency agreement should cover all eventualities such as: what happens to outstanding orders and related commission if you end the relationship. Commission payments, support from the principal, sales area exclusivity, and any sales targets. The EU Commercial Agent Directive 1993 was created to protect the sales agent and give them more rights. Agency agreements should take these points into consideration. For a summary of the agreement (not the official document, please see here). Link to https://www.legislation.gov.uk/uksi/1993/3053/made/data.pdf Making sure you are happy with the terms and conditions of the agreement is worth taking time over at the beginning of your relationship as it will prevent disagreements later on. You may wish to get the agreement checked over by a legal professional with experience of sales agency law. You can find out more about legal services at: (Link to https://salesagents.uk/legal-advice-for-sales-agents-and-principals/ )

What should I be wary of when considering opportunities?

We fully check the wording on the adverts on the website, but it is impossible for us to validate all the opportunities are exactly as advertised. Here we offer some guidelines when considering an opportunity. If you want to receive commissions based on the sales ‘you’ make, rather than the sales team you recruit will make, you would be wise to steer clear of pyramid schemes or network marketing recruitment schemes. When the emphasis is on recruiting people to sell, rather than finding customers, you will work very hard on recruiting and maintaining a sales team and you will depend on their sales to earn commission. This can be very hard work and for little or no reward. A Company that wants you to ‘buy’ stock or pay to work for them should be carefully considered. A sales agent is not a reseller, they don’t keep stock. Sales agents take orders from customers and send the order to their business principal to be fulfilled. Beware of companies asking for payment to become a sales agent for them. A small deposit on company equipment such as a laptop is understandable, but large payments for training or exclusive areas should start alarm bells ringing.

Is a sub-agency the same as a pyramid scheme or multi-level marketing?

Only in that you have created another level between the sale and the principal, which also means you are diluting your commissions per sale. However, you may make more sales this way and make up for diluting your commissions.

What if the principal is new to selling through agents or has a new unproven product?

Whether you take on these agencies is completely up to you. An experienced business with a proven product will be a very popular opportunity, as a result the commission may be low and the market more competitive. With a new business or product, you may be able to negotiate a higher commission percentage and form a relationship with a potentially successful business at an early stage. You can question and investigate the company’s market research, their reasoning behind launching the products and services, and any market tests they have completed. You may also suggest a trial selling period before signing a binding agreement. Make sure you have a temporary agreement to ensure you get paid for sales during this period. You might want to ensure you are paid on your first sales before you invest your full resources in your sales activity. Your contract should also offer some protection, but get to know your principal. All you need to decide is if you can sell the products or services and you are happy with the commission scheme. If you are happy and think or know you can close sales, then go for it! If you’re cautious or concerned, proceed slowly and give the opportunity a trial run.

What are the advantages of being a sales agent?

- You are your own boss. - Flexibility in all areas of your work. - Work the hours that suit you and fit around your commitments. - Choose who you sell for. - Choose what you sell. - Choose how you sell: face to face, online, telephone. - Decide how much you want to earn. - Have more than one agency if you wish. - No-one can make you redundant. - You are paid on your sales.

What are the disadvantages of being a sales agent?

You will need to work more independently and cannot depend on help and support from a sales manager. You will not have a fixed salary, but over time you can get recurring income which will serve the same purpose. You will need to do your own accounting and administration. You make all the choices and decisions, so your success is dependent on you. The good news is, we are here to offer opportunities, ideas, tips and resources. To get the most from the Salesagents.uk website register with us at (Link to registration)

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