Exclusivity has its privilege, such as promoting loyalty and commitment within the involved parties, especially when it comes to engaging in business. But, what about those who prefer multiple parties as opposed to only one business partner? Well, that’s when non-exclusivity becomes a choice. Most often, this is observed between distributors and manufacturers who will be selling goods and items to consumers. However, before they shake their hands to begin their business partnership, they should create and sign a no-exclusive distribution agreement.
Imagine getting into a relationship where the goal of you and another person is to sell lemonades. But, the one who will make the lemonades will be your partner, while you will be the one who will sell his products. Now, due to the bond and value that you two put into each other for your relationship, you limit your business within just the two of you; that’s exclusive distribution. On the one hand, imagine being in the same business and relationship, yet welcoming others to take part in it? Therefore, it won’t be just you and your partner anymore because there are other parties; and that’s what it means to be in a non-exclusive distribution agreement. Although a business can prosper with just one distributor, some business owners prefer to cater to their market better by having more and more sellers over time. But, one disadvantage of agreeing to be non-exclusive is that the competition for selling the products will be higher since there are many sellers already. Nevertheless, the decision all lies to the business owner and his priorities for growing his business and introducing his product to the market.
You may think that exclusivity is better. Well, it depends, but most often in the business industry, opening opportunities to many parties can be beneficial. So, get to know below what advantages you can expect to have when you get into a non-exclusive distribution agreement:
When you start to sell products, you must be able to cater to your target market, regardless of wherever part of the world they are. Luckily, it is possible. But, only if you sign and get into a non-exclusive distribution agreement with multiple distributors and sellers. Each distributor will be able to market the products with ease to their already established consumers.
You might ask why there’s a low risk compared to being in an exclusive distribution agreement? Well, it’s simply because when getting involved in a non-exclusive distribution agreement, distributors won’t have a target number of sales per day. The terms will depend on the distributor and the manufacturer of the products, but most often, distributors only pay for every purchased product from the ones that they ordered.
This is highly essential, especially in today’s generation where most consumers prefer searching over the internet to find out more about the product instead of testing it out on their own. Therefore, more distributing companies mean more websites who will link and introduce the product to online shoppers and consumers.
With our non-exclusive distribution agreement form samples, you’ll have a guide in making the contract that you need. It’s all compatible with all devices, downloadable, editable, printable, and above all, free of charge, too! Just go through each sample template one-by-one and choose which suits your business needs and preferences best:
