TL;DR
International sales representation: what sales agents do, key considerations for representation agreements, and alternative sales channels.
- An international sales representative facilitates sales in a market in exchange for a commission.
- The agreement should define territory, exclusivity, commission, targets, governing law, and termination.
- Actively managing representatives keeps agreements from sitting idle.
Published: · Updated: · Author: AXIA Consult
International sales representation is a way to sell abroad through an agent who knows the market and local buyers. An international representative can accelerate market entry, provided the agreement and management processes are well structured.
What an International Sales Representative Does
Identifies buyers, presents the product, facilitates negotiations, and follows up on orders within a defined territory, typically earning a commission. Unlike a distributor, a representative generally does not purchase the goods.
International Sales Representation Agreement
Essential clauses: territory and products, exclusivity, commission basis and rate, minimum targets, reporting obligations, brand use, confidentiality, governing law, jurisdiction or arbitration, and termination rules. In Brazil, Lei nº 4.886/1965 governs sales representation; in international agreements, the laws of the representative’s country may provide for compensation. Always have the agreement reviewed by an attorney with relevant expertise.
How to Select and Manage a Representative
Evaluate their client portfolio, industries served, references, and conflicts of interest. Then establish targets, reporting requirements, and regular meetings. Without active management, the representative is likely to prioritize other brands.
Representative, Distributor, or Direct Sales
Compare control, margins, and costs in distributor, importer, or direct sales. AXIA helps select the right channel and can coordinate representatives in the market.
Frequently asked questions
What is international sales representation?
It is the facilitation of sales abroad by an agent who represents a company within a territory, typically in exchange for a commission.
What should an international sales representation agreement include?
Territory, products, exclusivity, commission, targets, obligations, governing law, dispute resolution, and termination. Have it reviewed by an attorney with relevant expertise.
Does an international representative purchase the goods?
Generally, no. The distributor or importer purchases and resells the goods.
What commission should you pay an international representative?
It varies by industry, market, and order value. There is no standard rate; negotiate based on margins and the sales effort required.
How can you find an international sales representative?
Through industry associations, trade shows, chambers of commerce, referrals, and trade promotion programs.
Sources and references
- Planalto — Lei nº 4.886/1965 (sales representation)
- ApexBrasil — Brazilian Trade and Investment Promotion Agency
Next step
Schedule an assessment to evaluate markets, offer and execution model.