Some of our clients have explored the use of Independent Sales Representatives to promote their products and services in hopes of boosting revenues.  Independent Sales Representatives can be an important part of a company’s success.  However, it is critical to have a Sales Representation Agreement in place that outlines the respective rights and responsibilities of both the company and the Independent Sales Representative.  Here are several factors that should be considered and addressed in an Independent Sales Representative Agreement:

  • Determine the goals of the relationship and the purpose for entering into an independent contractor relationship as opposed to hiring an employee.
  • Review the Connecticut laws regarding independent contractors to be sure that the Independent Sales Representative will in fact classify as an independent contractor and not an employee.
  • Accurately define confidential information that will be shared with the Independent Sales Representative and ensure that restrictions are set forth in the Agreement to protect such confidential information.
  • Define the geographic territory that the Independent Sales Representative will be covering.
  • Define the types and frequency of reports, forecasts, and correspondence that the Independent Sales Representative will need to deliver to the company. 
  • State whether or not the company can engage other Independent Sales Representatives and whether or not the Independent Sales Representative can work with other competing and/or non competing companies. 
  • State how the company will provide material, advertising information, and pricing to the Independent Sales Representative, how that material should be used, and when that material must be returned to the company.


If you are considering engaging an Independent Sales Representative to assist your business, we can guide you through these considerations and more, as well as draft an Independent Sales Representative Agreement that protects you and your business and helps you to achieve your goals.