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Agent Contract Terms

On a call today with an Agent, we were discussing some contract verbiage. Most agent hope for an evergreen commission contract. As long as the customer I bring to you is a customer, you should pay me on that invoice. Obviously, carriers, especially CFO’s, dislike that clause. Every commission that doesn’t have to be paid is profit for the carrier. It’s a battle to see which party gets the most benefit. It’s kind of ridiculous actually. What ever happened to win-win? Ha! That would entail vendors understanding the word Partner.

The Non-Solicitation clause is an interesting deal. You can’t contact your own clients? Who thinks this stuff up? Certainly, there should be protection about not pulling a client under contract from the vendor, but the client isn’t owned by the carrier; the client should be the responsibility of the channel partner. Who introduced who after all?

Termination without Cause is always an eye-opener. So at any time you can get rid of the channel partner? That must be a great way to think about business partnerships.

Any other terms in your partner agreements that raise an eyebrow?

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    December 17, 2013 , On Rad's Radar

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