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Product Distribution Agreement Basics

You may own a great product, but it's not much good if you can't get it out there: signing a Product Distribution Agreement can get your merchandise into the marketplace fast. When you're an ace distributor and commissions are your bread and butter, you need to agree up front on your cut of sales. With a Product Distribution Agreement, everyone gets paid.

Use the Product Distribution Agreement document if:

  • You own products which will be placed in the possession of another party who will sell the products for commission.
  • You want to sell another person's or company's products for a commission.

Marketplace competition can be fierce and complex, especially if you're going global. A strong relationship between product owners and distributors could make the difference between making it big or going belly up. To make sure the relationship is mutually beneficial, you'll need to write up a Product Distribution Agreement. Your first thoughts may be about how to structure the commissions, but there are many other details to decide on. What happens when the distributor can't move the goods? Will you have sales quotas? Will you offer warranties? If the distributor takes on employees, you may need to agree on how employment taxes and insurance will be handled. In a deal that involves multiple products and business, it can get messy. We'll walk you through the details you'll need to think about to create a Product Distribution Agreement.

Other names for this document: Distribution Agreement, Product Distribution Contract, Distributor Contract Agreement

Sample Product Distribution Agreement

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