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.
Required professional qualities
The profession is undoubtedly not for a modest silent person who is not known for his sociability. The position of sales representative must be filled by a person with a number of qualities:
- talent for sales - you either have it or you don’t, the art of selling can only be developed and brought to perfection, but there must be an innate predisposition to such work;
- talkativeness - a minimum amount of time is allotted for getting to know a store representative, during which you need to make a good impression, present the products and place an order;
- discipline - the level of income and success at work depend on the ability to plan a working day, because in one working day you need to solve many problems;
- conflict-free – you have to communicate with completely different people and you need to be able to find a special approach to each.
Note: It is important to be able to let a random insult pass by and not react to it. At the same time, it is necessary to be able to delicately but confidently confront the offender and maintain good, business-like relationships with him (if the work requires it).
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.
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.
II. Functions
The trading agent is assigned the following functions:
2.1. Concluding purchase and sale transactions.
2.2. Identification and accounting of potential buyers (customers) for manufactured products and services provided.
2.3. Consultation on technical and consumer characteristics of goods (services), their advertising.
2.4. Organization of delivery of purchased products.
2.5. Registration, recording and ensuring the safety of documentation.
2.6. [Enter as appropriate].
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.
Paths to obtaining a profession
Many young people are interested in how to become a sales agent. You can get a profession in different ways. However, the first condition is the presence of secondary education. The second mandatory circumstance is age. By law, a minor cannot be a sales agent. This is due to the fact that the profession is associated with money circulation and financial responsibility. Sales agents are trained by special educational institutions. You can get a profession at an educational institution that trains sales specialists. In addition, some educational institutions that provide knowledge from other areas provide the opportunity to receive additional training.
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.
Career prospects
It is wrong to think that a sales agent is the pinnacle of a career. With maximum effort, after just six months you can become an instructor, brand manager or supervisor. Don’t stop there, improve, show your talents and complete your tasks efficiently and responsibly. In this case, your efforts will be rewarded with a promotion. Working as a sales agent is difficult, but the financial result and the moral satisfaction gained from daily victories over oneself are worth the effort.
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.
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| Plushechka [email protected] Belarus, Gomel Wrote 999 messages Write a private message Reputation: | |
| We started doing commission trading. So I’m thinking, what is the code for commission trading? What should I write in my reports then? After all, remuneration for this type of activity is carried out separately? | |
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| shell [email hidden] Belarus, Minsk Wrote 8776 messages Write a private message Reputation: 1544 | #2[397824] September 10, 2011, 0:20 |
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Only time makes us understand: who is a friend..., who is an enemy..., who is just like that...| Plushka [email protected] Belarus Gomel Wrote 999 messages Write a private message Reputation: | #3[397831] September 10, 2011, 0:40 |
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If you divide it honestly, you'll get equal amounts of horseradish| Catherine [email hidden] Minsk Wrote 17 messages Write a private message Reputation: | #5[765429] September 21, 2015, 15:32 |
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