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A possible arrangement might be to enter an agreement having the rep set up as a Broker or Sub-dealer. The sub-dealer would have wholesale pricing from my company and would write their own contracts with customers.
A Broker would write contracts for us and slap a broker fee of, say, 20% on top of the contract as their commission which is to be paid by the customer.
Otherwise, I'm guessing that I would have to set them up as commission based exempt reps that got paid after we were paid on a job and it could be done on a sliding scale based on the profit or mark-up amount.
But, what I am trying to get suggestions on, is how do I protect myself from losses caused by them and their mistakes?
And how can I protect myself from any mis-representation from them? Is it ok to have them get a contract signed by the customer and have the rep sign it. And then have a clause stipulating that the contract is not binding without my signature?
So, maybe we can wrap this up. Would I be able to provide them with business cards with their name? If so, would the card need to have them titled as independent Sales Associate (or Rep)? Would that be the clarification to the customer so that they understand that the rep is an independant?
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