Regulatory regulation
To find out the pros and cons of working under an agency agreement, let’s consider what acts it is regulated by.
The Civil Code defines what agency relations are and describes the rights and obligations of the parties. The Code is not the only document regulating this area of public relations. When proposing to sign such an agreement, one should not lose sight of tax legislation.
In addition, relations with agents are subject to laws regulating certain areas (for example, tourism). They may establish additional rules.
The application of these norms is discussed in judicial practice, often in arbitration. Also, general explanations on this matter are given in some Resolutions of the Plenum of the RF Armed Forces.
Status difference
The pros and cons of working under an agency agreement begin with the status. A person with employee status submits an application for a job and signs an employment contract. It is compiled in fact according to a standard form. The employer has the right to make additions that do not detract from the rights of the employee. And from the moment of signing or actually entering work, labor legislation begins to apply.
By providing the services of an agent, a person acquires rights and obligations in accordance with civil law, and his partner has more freedom to establish the rules of cooperation.
A fairly high degree of freedom in determining the terms of cooperation is both a plus and a minus, depending on which point of view is closer.
Agreement conditions
The law requires two clauses to be included in the agreement; without them it has no legal force:
- the subject or list of actions that the agent must perform;
- on whose behalf the agent conducts activities (his own or the principal).
The agreement usually includes two more points:
- validity;
- amount of remuneration.
When inviting a company for cooperation, it publishes a sample agency contract for work. And the potential employee has an idea of what awaits him. One example is presented in the article.
What kind of profession is this?
A sales agent is a profession that you have most likely heard about more than once. However, do you know what it is? Indeed, in most cases, people, if they do not understand any topic, can hear and remember this or that name somewhere. But if you ask them about the exact meaning, they are lost. So, if you don’t know what a sales agent does, that’s okay. It is to fill this gap that our article was created. Perhaps, after reading it, you will understand that this is exactly the profession that you dreamed of or that is ideal for you specifically at this stage of life. So, a sales agent is a specialist who acts as a kind of intermediary between the manufacturer and the buyer. He can also act as an intermediary between the distributor and various stores that sell specific products. In general, simply put, this is an employee of one company who is responsible for distributing the products of this company. In fact, you need to know your company's products well in order to act as a sales agent. However, this is only a brief description of the profession. Most likely, you want to know a little more about it before you decide to try yourself in this field.
How the work is organized
The agent’s tasks include searching for clients using a database provided by the company or on an independent basis.
Having found a client, the agent formalizes the purchase of a service or product by signing an agreement or drawing up other documents confirming the fact of the transaction. The list of supporting documents is agreed upon in advance.
Determining its structure and form is the prerogative of the company. The report is the basis for payment of remuneration. Claims must be made no later than 30 days (or other period prescribed by law or contract) after receipt of the documents, otherwise the report is considered accepted.
Actual employment relationships are sometimes hidden behind the performance of work under an agency agreement. This happens in shopping centers. The employee is subject to labor regulations and has a place of work. However, payments are calculated and made as an agent.
Trading agent: job description
Every day of a specialist begins with a planning meeting. It discusses what has already been done and tasks that should be implemented. Each sales agent has his own plan - the norm. For example, at least five contracts must be concluded per week. After the planning meeting, the specialist arms himself with price lists and creates a route for the day. The active activity of sales agents continues until approximately 15:00. Before this time, it is more likely to conclude the necessary contracts. Each specialist has more than a hundred points in the database. You need to travel around most of them in a day. Having your own car will be a big plus. The main duties of an agent are:
- Collection of applications.
- Monitoring the fulfillment of obligations.
- Collecting money.
In addition, the sales agent constantly comes up with and develops schemes, thanks to which various agreements are formed between clients. These could be different promotions, “shelf buyouts” (part of the counter is occupied by a certain product category), and so on.
Nuances with payments
The remuneration is calculated based on the amount of sales secured by the agent. He is entitled to a share of the income. The amount of payments depends on the conditions of the company. Successful agents are offered bonuses in various forms and increased payments.
The law requires payment to be made no later than a week after the report is considered accepted, unless otherwise provided by laws and company rules.
If the amount of payments is not clear from the contract, the court has the right to recover the amount that is paid in the same area under similar circumstances.
If the agent is a citizen who does not have the status of an individual entrepreneur, contributions to the budget are made by the company paying the remuneration. If the employee is an entrepreneur, payments become his responsibility.
Requirements: Do you need education?
As stated earlier, you do not need a college degree to become a sales agent. Only an average will be enough, since in this work everything depends on your skills, which can be acquired in practice. However, it is worth noting that a higher education will definitely not harm you, since large companies often first choose those candidates who have it. Naturally, in small companies everything may be less severe, so you can always start working in a small company, while simultaneously studying as a correspondence student, so that in a couple of years you will be able to either rise to a higher level in your company, or move to work as a sales agent in a larger one. serious enterprise.
What types of activities are covered?
Work under an agency agreement may include the same actions that are required of an employee. But in a number of cases, the law directly refers to the agency services agreement as the basis of the relationship between the parties in the following cases:
- insurance;
- legal services;
- investment activities;
- organization of sea transportation;
- payments industry;
- sales field.
In the latter case, there are several options:
- with the right of exclusive sale (no one else offers similar goods or services);
- the manufacturer still has the right to sell;
- Agents are also involved in sales; their number is not limited.
Blueprint for success
There is a certain model - 10 steps of a sales agent.
This scheme includes the following points.
- Preparation, planning, goal setting. Before visiting retail outlets, the agent reviews his notes, plans a route for the day, and collects all the necessary documents.
- Inspection and analysis (external and internal) of CT. these actions involve direct communication with the responsible persons of the retail outlet, withdrawal of balances, and the formation of a new application.
- Establishing contact. At this stage, it is important to present yourself competently. When communicating, it is important to know the topics and problems that are relevant to a given enterprise.
- Establishment and formation of needs. Using his communication skills and information about trade turnover, the agent offers this or that product. He asks the client questions to find out what is most relevant at the moment. During the conversation, it is important to listen carefully to the person and correctly draw conclusions.
- Presentation. During it, the agent talks about the product and the benefits of purchasing it. This is especially important when introducing new products to the market. It is advisable to have a sample of the product so that the client can visually see the product.
- Work with objections. Customers are not always ready to purchase a particular product (especially something new that has never been available at their outlet). So of course they start objecting. In this case, the agent must listen carefully, without interrupting, to all the client’s arguments. Most of them have no practical basis and are a consequence of normal fear of the risk of losing money. The agent must cut out false conclusions and leave those objections that have real significance. After this, the specialist tells how to solve this or that problem that, in the client’s opinion, may arise. It's important to be convincing here.
- Completion of the transaction. If all the previous stages brought positive results, then we can consider that the contract has been concluded. However, the agent must first consolidate his success by using “closing”, leading questions (for example, “are we signing a contract?” or “for how long are we entering into a contract with you?”).
- Merchandising. One of the prerequisites for a successful sale is the correct placement of goods on the counter. The sales agent must know how to place products on shelves so that they arouse consumer interest.
- End of the visit. At this stage, the necessary documentation is drawn up, the details of cooperation are clarified, the terms and form of delivery, and the payment procedure are agreed upon.
- Analysis. It includes an assessment of the amount of time spent on the visit, the level of achievement of set goals (scope of the contract), and other things. Based on the analysis, goals are set for the next visit to the outlet.
What are the disadvantages of being an agent?
There are a lot of them too.
- No guaranteed salary.
- No right to leave.
- Lack of payment due to temporary disability (in other words, you have to get sick solely at your own expense).
- The risk of the principal not recognizing the transaction.
- In the event of termination of the contract, payments are made only for work actually performed; compensation for reduction is not provided.
- Contributions to the Social Insurance Fund for subsequent payments in connection with unemployment, accidents, and parental leave are mandatory if provided for by agreement of the parties.