Glossary › Selling & Business › Sales agent

🤝 Selling & Business term

Sales agent

A person or company that sells your products or services on your behalf and earns a commission on each sale. The agent doesn’t buy or hold your stock. You fulfil the orders they bring in.

How a sales agent works
🔍
Agent finds buyer
→
📦
You deliver
→
💵
Agent earns commission
You keep the stock and the customer relationship
Commission rates are agreed between you and the agent.

Common questions

How is a sales agent paid?

Usually by commission, a percentage of each sale they bring in. Some agents also charge a retainer. Agree the rate and when it is paid in writing.

When does a sales agent make sense?

For higher-value products, corporate gifts and bulk orders, where one sale is worth the commission and the agent has contacts you don’t.

What should I agree with an agent?

The commission rate, which customers or areas they cover, whether they are exclusive, how long the arrangement lasts and how leads are recorded.

Why it matters

An agent lets you pay only for results, but agents often represent several brands and focus on whatever earns them the most.

🇸🇬 In Singapore

Commission-based agents are common for corporate gifting, festive hampers and B2B supplies. For everyday consumer products and services, a done-for-you selling partner that reaches shoppers online is often a better fit.

Tips

  • Start with a trial period.
  • Track which sales came from the agent.
  • Make sure your price leaves room for the commission.

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