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Sales Agents

Who is a commercial agent?

Commercial agents

  • are independent entrepreneurs;
  • are entrusted with arranging the sale goods or concluding transactions in the name of and on behalf of the principal.

Definition of the term self-employed Commercial Agent in the Federal Austrian Law on Commercial Agents:

  • "A Commercial Agent shall mean a person who has been continuously entrusted by another person (hereinafter called the „Principal") to negotiate or conclude business, unless concerning immovable property, on behalf of and in the name of the Principal and who performs this activity on a self-employed and commercial basis." 

The Federal Austrian Law regarding the legal status of self-employed Commercial Agents you may find in the Law on Commercial Agents (HVertrG 1993).  

The benefits of Austrian commercial agents

Austrian commercial agents are specialists in sales and marketing.

  • Commercial agents have up to date market knowledge
    They provide their principal with first hand information thus enabling fast action.
  • Commercial agents work professionally
    Due to technological changes, commercial agents and their modern tools consist of a perfect liaison with the market.
  • Commercial agents have long standing customer relationships
    Commercial agents take good care of their business relationships with their customers. A deep rooted relationships remains important in difficult market conditions.
  • Commercial agents are sales specialists
    Commercial agents represent several principals and can therefore put together a perfect range of products that complement each other for their clients.
  • Commercial agents work based on turnover
    Commercial agents only receive payment once a sale has been completed and i the form of a commission, which is regulated in the contract.
  • Commercial agents do not charge fixed fees
    Commercial agents are independent entrepreneurs. The principal therefore does not pay any social costs such as vacation and Christmas bonuses or health insurance. No emoluments, car, training or overhead expenses are incurred.
  • Commercial agents enable flat organisational structures for the principle
    Outsourcing sales and parts of marketing operations (such as market observation, product launch) to independent commercial agents creates lean organisational structures. The principal saves on staff, avoids surplus capacity and can concentrate on core business.
  • Commercial agents / commercial agencies are strategic partners in a globalised world
    Commercial agents are indispensable contacts for exporting firms all over the world. With their knowledge, new markets can be opened up with limited risks. All Austrian commercial agents are members of the Austrian Federal Economic Chamber and the international association IUCAB and are governed by the Law on Commercial Agents (HVertrG 1993).