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What is an Agency?
An agency refers to a company that acts as an intermediary, handling transactions or representing another party.
There are primarily two types of agency agreements: Distributor Agreement and Agency Agreement.
These agreements differ in their terms and responsibilities, so it's crucial to understand which type is best suited to your needs before signing a contract.
| Distributor Contract | Agency Contract | |
|---|---|---|
| Contract Structure | Sales contract is established between the manufacturer and the distributor, and between the distributor and the customer | Sales contract is established between the manufacturer and the customer (with the agent facilitating the contract) |
| Pricing of Products | Set by the distributor | Set by the manufacturer |
| Inventory and Payment Risks | Borne by the distributor | Borne by the manufacturer |
| Contract Responsibilities to End Users | The distributor is responsible for the contract | The manufacturer is responsible for the contract |
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Smooth Sales and Marketing for Smaller Companies
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