Overseas Representatives are a major expense and a very important success factor to many of our exporting clients.

 

We were recently asked what needs to be included in an overseas rep agreement. As we understand the importance of this document we thought it would be prudent to provide some insight into the types of things should be included in an overseas rep agreement.

 

1. Contact details
   Name, street and postal address, phone/fax numbers, email etc. make it very clear who you are engaging – an individual or a company.
   
   
2. Remuneration
   Set amount per week / month / hourly rate payment terms – 7 days from invoice / 1st of each month regularity of payment – weekly / monthly / upon invoice payment methods – direct debit, telegraphic transfer currency – A$, US$, Yen.
   
   
3. Agreement period
   3 months / 1 year commencement date contingency for extending the agreement hours of work.
   
   
4. Termination clauses
   
   
5. Duties
   Exactly what you have agreed that they should do – be specific duties may include – attend trade fairs, arrange appointments, meet with clients, arrange marketing activities, take potential clients on tours.
   
   
6. Reporting
   Monthly formal written reports or weekly informal email reports detailing what their activities have been who to report to keep weekly log of activities to be available upon request keep third party correspondence (i.e. emails from potential clients etc.) to be available upon request provide photos showing activities such as trade shows, tours etc.
   
   
7. Costs incurred
   Will costs such as flights, phone bills etc. be reimbursed or not? What will be reimbursable and how will they be paid what will you supply e.g. brochures, samples, support.
   
   
8. Markets/jurisdiction
   Specify what countries / regions they will be covering – all China / Asia / South East Asia.
   
   
9. Overseas office
   Are they to maintain an "office" for you open hours what costs will you cover – rent and outgoings, staff, stationary, phone bill show are these costs to be paid.
   
   
10. Other normal contact clause
    Confidentiality privacy/confidentiality conduct non-competitive clause exclusive client modification of agreement terms.

 

For EMDG purposes some things to remember:

• Bonuses, commission and other performance driven payments are not eligible under EMDG
• Retainers and reimbursement of expenses is eligible 
• Maximum claim of $200K for all overseas reps
• Agreement period should be minimum of 12 months
• Photos are a great way to substantiate an overseas office and marketing activities
• Your rep should make themselves knows to the local Austrade office and have regular contact, this saves problems if assessors wish to verify your overseas rep during the assessment process

As a GovtGrants client we will review your overseas rep agreement from an EMDG point of view and make recommendations. This FREE service.