Who needs an agency agreement for the provision of services

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Maksudasm
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Joined: Thu Jan 02, 2025 6:46 am

Who needs an agency agreement for the provision of services

Post by Maksudasm »

Not all enterprises are able to organize a complete chain of business processes from purchasing raw materials and manufacturing products to selling and delivering them to end consumers. Even large organizations prefer to work with dealers and distributors who help them sell goods and services.

The following may act as intermediaries in a simple agency agreement for the provision of services:

Marketplaces are online platforms where sellers can post their products for sale. Such platforms act as intermediaries between manufacturers and buyers, speeding up the process of selling products. They also advertise products, store them in their warehouses, and deliver them to buyers.

Labor exchanges are online australia email list platforms for finding workers. Here, customers can find contractors. Freelancers look for work on such platforms. Labor exchanges act as intermediaries, charging a commission for each transaction between participants. On such platforms, you can find specialists of various professions.

Individuals and businesses that earn income by providing intermediary services.

In the insurance industry, various organizations such as banks, car dealerships, notary offices, freight carriers and leasing companies play an intermediary role.

Insurance or leasing

Source: shutterstock.com

Although insurance is not their main activity, they provide intermediary services in the implementation of their commercial programs, services or goods. Such companies create agent sales channels, receiving profit from the sale of insurance products. For these organizations, such cooperation is very profitable, since about 60% of sales in this area are carried out through the agent network. In auto insurance, this figure is about 70%.

The agency scheme of work can be used in a variety of situations. Companies entering new markets prefer to attract experienced specialists instead of studying the business environment from scratch, opening new offices and hiring employees. Organizations and institutions enter into agency agreements with contractors to outsource some tasks. Online stores benefit from agreements with marketplaces, transport or courier organizations, as well as order pick-up points. Self-employed individuals enter into agency agreements with intermediaries who help them find customers or sell goods.

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