I recently met a marketer who wants to be the major distributor of my product covering the SE as he already has a good network in these areas.

It's a a big kudos as he has shown he is capable by selling over 6000 units of my product withing a 45 days period which is really laudable.

My concern is with the agreement he wants us to sign that will give him full rights over the distributorship among other things.
I understand the agreement will atleast bring out some seriousness and honesty too but these particular points in that agreement is giving me thoughts

1. He will be the sole distributor for ALL my products in same category.

2. The agreement will run for 10 years after which it can be renewed if both parties deem fit.

3. The producer will be willing to grant trade credits if the need arises.

As for the first point, I have about five different products in my production line which I intend to introduce in the future but not yet. I only focus on one for now for some reasons.

Is it okay to sign an agreement on something that has not been produced cause that's what that first point seems to be.

As for the second point, though 10 years is not bad but I was hoping 5 yrs is okay. However he puts up an argument that from yr 1 through 4 he will be making sure to create and build demand for the product and from yr 5 will be when he starts reaping from the sales.

From the third point, it seems I will be the one giving the goods on credit but I actually hope in arrangements like this, the distributor will even assist in funds to some extent.

I really need inputs from those who have experience on issues like this before I sign off my hard work within seconds.

u re d owner of ur brand u shld decide on wat u need not dem deciding for u ok cos he only planing to be d sole distributor cos he has see d future of the biz plz sign wisely

Let the agreement not agreed to total credit also let it carries that you have the right to call it a quit without explanation.

Furthermore, don't accept to all your products. From experience, it means you will just be producing for him.

It may look like you're just starting now but any decision made now may go a long way to affect the biz either positively or negatively.

Be careful. God will lead you.

What's the product like?
I can help in distribution also
I'm based in port Harcourt.

What are you producing..you must not call the name.but the product

futurenix:

I recently met a marketer who wants to be the major distributor of my product covering the SE as he already has a good network in these areas.

It's a a big kudos as he has shown he is capable by selling over 6000 units of my product withing a 45 days period which is really laudable.

My concern is with the agreement he wants us to sign that will give him full rights over the distributorship among other things.
I understand the agreement will atleast bring out some seriousness and honesty too but these particular points in that agreement is giving me thoughts

1. He will be the sole distributor for ALL my products in same category.

2. The agreement will run for 10 years after which it can be renewed if both parties deem fit.

3. The producer will be willing to grant trade credits if the need arises.

As for the first point, I have about five different products in my production line which I intend to introduce in the future but not yet. I only focus on one for now for some reasons.

Is it okay to sign an agreement on something that has not been produced cause that's what that first point seems to be.

As for the second point, though 10 years is not bad but I was hoping 5 yrs is okay. However he puts up an argument that from yr 1 through 4 he will be making sure to create and build demand for the product and from yr 5 will be when he starts reaping from the sales.

From the third point, it seems I will be the one giving the goods on credit but I actually hope in arrangements like this, the distributor will even assist in funds to some extent.

I really need inputs from those who have experience on issues like this before I sign off my hard work within seconds.

I kind of understand his fears because I have been in a distributor/ partnership business that got my hands burnt I was distributing motorcycle tyres for a company due to my connection and network of Costomer I was doing great, these guys went thru my back and was supplying my Costomers at a reduced rate thereby sabotaging my efforts I was angry they did that to me I didn't have any documents to sue them I gave up, some of these products guys can be selfish and selfcentered
So his fears might be due to experience,
Let him understand you are a sincere person and as long as he is straightforward he will be your number 1 distributor
I don't really subscribe to him alone been the sole distributor of your products because if he fails you fail
You can grant him credits it's normal between distributors
You can try and advertise your products so that more people will get to know about it,
And besides what's your products about I have a ready market here in the north Kano State.

Thanks all for the contribution.

The product is actually Air fresheners used in cars, homes, offices etc.

hopeforcharles:

I kind of understand his fears because I have been in a distributor/ partnership business that got my hands burnt I was distributing motorcycle tyres for a company due to my connection and network of Costomer I was doing great, these guys went thru my back and was supplying my Costomers at a reduced rate thereby sabotaging my efforts I was angry they did that to me I didn't have any documents to sue them I gave up, some of these products guys can be selfish and selfcentered
So his fears might be due to experience,
Let him understand you are a sincere person and as long as he is straightforward he will be your number 1 distributor
I don't really subscribe to him alone been the sole distributor of your products because if he fails you fail
You can grant him credits it's normal between distributors
You can try and advertise your products so that more people will get to know about it,
And besides what's your products about I have a ready market here in the north Kano State.

it's his experience in insincere dealings that warrants him to take such precautions and I don't blame him for it but just want to take precautions. As for the product, it's Air fresheners.

futurenix:


it's his experience in insincere dealings that warrants him to take such precautions and I don't blame him for it but just want to take precautions. As for the product, it's Air fresheners.

Ok i am in the medical field, but dont sell ur birthright because of a pot of porridge.

in my opinion, its too far reaching

just sign a dealership per product.

if he wants to distribute other products in the future, then you guys sign a new agreement specific to that product.

he wants insurance that you wnt circumvent him, thats great- you sign dat u wnt circumvent him on product A called blablabla and all iterations of same product, not a whole category- except e go favor you or you desperate, then you go really define the category proper. wetin be category? wetin no join? list all products etc, or else you go gree give am rights to everything, then when e no get money buy some new product, you ghas give am on credit- tying down production capital- think am.

find a lawyer friend , buy am beer and discuss with am.

we for here na amatoeur rilly and advice na 'a penny for a million'

shibiyu:
in my opinion, its too far reaching

just sign a dealership per product.

if he wants to distribute other products in the future, then you guys sign a new agreement specific to that product.

he wants insurance that you wnt circumvent him, thats great- you sign dat u wnt circumvent him on product A called blablabla and all iterations of same product, not a whole category- except e go favor you or you desperate, then you go really define the category proper. wetin be category? wetin no join? list all products etc, or else you go gree give am rights to everything, then when e no get money buy some new product, you ghas give am on credit- tying down production capital- think am.

find a lawyer friend , buy am beer and discuss with am.

we for here na amatoeur rilly and advice na 'a penny for a million'

Thank you very much. I appreciate

2yrs is okay and should be subject to review after that two years.