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Relationship with outside sales

September 1,  2021
Relationship with outside sales
            We use the Kirschenbaum Contracts with our subscribers.  I am trying to obtain an agreement to accommodate Sales persons and need your advice.   One of my 1099 sales persons has got an Alarm license.  He is hiring a few reps who will be 1099 sales people for his company and he will sell the customer agreements to me as these are contracted. 
            I will pay him for every Deal and he will compensate his 1099 reps.
            What agreement do you recommend I use between my company and his, and each of the reps?
            Will the “Independent Sales Affiliate” be the right contract?
Thanks as always
Name withheld
            Your sales person is becoming truly independent.  He has obtained his own license and intends to engage his own workforce.  The new company is acting as your sales force by finding and contracting with new customers.  You don’t mention it but It seems like the plan is that his is signing customers up on his contracts, not yours because you mention that he will be selling them to you. 
            It would be cleaner if he signed the customer’s up on your contract form and you paid a commission.
            But let’s look at what contracts come into play depending on the arrangement.
            He signs up customers on his paper and then sells them to you:  He would need his own contracts which he would sell, transfer and assign at some point, either before installation or after installation.  The transfer is by Bill of Sale and Assignment; this form is a standard form.   You would have an Agreement with him to sell you the accounts on an on=going basis; this agreement would have to be customized for you and your deal. 
            He signs up customers on your contracts:  Since you will own the account once the contract is signed the only agreement you need with him is an Independent Sales Affiliate Agreement, or if you insist, a customized agreement.  He will need the Sales Affiliate Agreement with each of his reps. 
            If he has his own company makes sure he runs it like a company, carrying insurance. licenses and contracts. 

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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301