Distribution Agreement (Commission-Based)

Regardless of the business one is in, getting products to customers is key to any business' success. By using a distributor to get products in the right markets quickly, a business avoids the costly and time-consuming process of having to promote and deliver products by itself.

There are two types of agreements one can utilize to retain a distributor to promote, deliver, and sell products in a specific area: exclusive or non-exclusive. An exclusive agreement mandates that a distributor is the only distributor in an area, while a non-exclusive agreement allows a business to engage multiple distributors in the same region.

The distributors place purchase orders and the payments are made directly to the business. Upon receiving payment, the business ships its products to the distributor, who will in turn deliver them to the customer. The distributor receives a percentage of the sales made.

With a LegalZoom Distribution Agreement that outlines the rights and responsibilities of the company - and the individuals and organizations that will sell its products - you can avoid potential disputes and ill will.

A LegalZoom Distribution Agreement (Commission-Based) gives you:

• Essential Documentation: Ensure all parties detail their respective roles in writing.
• Dos & Don'ts: Learn best practices for exclusive and non-exclusive agreements.
• Detailed Instructions: Learn how to understand the terms of your agreement.