You are not ready to establish a company in the U.S., or you have not taken such a decision yet…
In this case, you can try selling through an agent based in the U.S. – for initial market entry or simply for testing the market. Thanks to a local agent, you can gain time to get to know legal regulations in the U.S., as well as market practices and potential clients in relation to your products or services.
The local agent can, in a sense, provide you with some space to act as if you have moved your domestic export unit (you already employ in your home country) to the U.S. In this context, you can take full control of your sales in the U.S., depending on the terms of your contract.
The agent can operate on behalf of your company in the U.S. – like a unit or an employee at your headquarters. Such a business relationship can sometimes allow you to get to know the U.S. market at less cost. And when you establish a company in the future, it can provide you with some readily available customer portfolio.
However, more than a few people or companies in the U.S. may be willing to represent your products & services. Therefore, you need to do some detailed research to choose the right agent. You should definitely evaluate your candidate agent’s previous work. For example, it would be very useful to check the following about any potential sales agents:
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Its current and previous product portfolio,
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Previous sales performance,
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Managerial capacity,
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Credit status and financial adequacy,
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Its market reputation; such as, through its earlier references,
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Whether they are a member of any professional or sectoral associations,
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Whether a lawsuit has previously been filed against.
Some companies may initiate an unwritten agency relationship through their acquaintances or relatives in the U.S. No matter who you choose as your local agent, you should set out the scope and boundaries of your relationship with your agent as clearly & early on as possible. Renegotiating contracts afterwards can lead to unnecessary waste of time and mutual lack of trust issues.
In U.S. business life, you can often encounter situations where time is more valuable than money.
In the U.S. market, it is very important to be able to react quickly to developments in the market. Therefore, the timing of your contracts can directly affect the continuity of your business activities.
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