Join Date: May 2008
Good morning. Your concerns have been experienced here at Bamar as well. We did have Sales Agreements and contracts, but many years ago back in the 80's & even 90's I think 'life of part' was pretty common for Mfg. Reps. We also experienced lack of involvement once the project is in production and going smoothly. Not only lack of involvement in that particular project, but lack of motivation to pursue other opportunities as well.
So, we did implement a clause where comm was paid based on the product life cycle. Comm declined (% wise) along with the product life cycle until phasing out completely.
Regarding competing reps, we usually had territories or situations where it was clear who the rep was, but we did have some instances of split commission. I suppose this is something both parties and your company, all 3 of you, would have to agree to.
I'm sure you will be 'tweaking' and perhaps re-wording some of the terms in the Agreement your rep is giving to you.
I believe there should definitely be a clause for a phase out along with the project, and a cancellation clause of course, by either party for any reason at any time.