How can my company make a deal with physical persons and pay commissions from their sales?

UPDATED: Oct 1, 2022

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How can my company make a deal with physical persons and pay commissions from their sales?

I am a US company owner. I would like to draw up a business development plan for
the company, which includes signing contracts with traders who are natural
persons who are not USA citizen. The main purpose of this agreement is to entitle
the persons in question to offer and sell the services of my company in return
for receiving commissions on sales and renewed subscriptions attracted by them.
Can you help me with this?

Vladislav Angelov
CEO Angels-FX Llc

Asked on August 6, 2018 under Business Law, Alaska


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

The contract is simple: we cannot draft one for you, but any local attorney should be able to; you likely could even draft (draw it up) yourself. The agreement simply needs to indicate:
1) What services they can and cannot offer;
2) Whether they need your approval to "close" the deal or not;
3) Required payment terms they can offer--do they have to get it all upfront? A deposit up front and bill for the rest? Can the whole sale be on credit or account?
4) What information or documentation do they need to provide to you as part of the process.
5) When do they get paid? (Recommended: not until *after* your company gets paid.)
6) What happens in the event you are not paid for a deal? (Recommended: it is written off as a bad debt or negated as a sale and they do not get any commission.)
7) What is their commission rate on new sales? On renewals?
8) Any other terms you feel are important.
You write that they are "natural persons who are not U.S. citizens"--be aware that if they (and/or the customers they bring you) are in foreign countries, it will be VERY difficult to enforce any agreements, whether with the traders or the customers. For example: say you sell services worth $20,000 to someone in another country; after they get the services, they refuse to pay; there is no cost effective or practical way to reach a person in an another nation and make them pay or honor the agreement.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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