Exclusivity has its privilege, such as promoting loyalty and commitment within the involved parties, especially when it comes to engaging in business. But, what about those who prefer multiple parties as opposed to only one business partner? Well, that’s when non-exclusivity becomes a choice. Most often, this is observed between distributors and manufacturers who will be selling goods and items to consumers. However, before they shake their hands to begin their business partnership, they should create and sign a no-exclusive distribution agreement.
Exclusive vs. Non-Exclusive Distribution
Imagine getting into a relationship where the goal of you and another person is to sell lemonades. But, the one who will make the lemonades will be your partner, while you will be the one who will sell his products. Now, due to the bond and value that you two put into each other for your relationship, you limit your business within just the two of you; that’s exclusive distribution. On the one hand, imagine being in the same business and relationship, yet welcoming others to take part in it? Therefore, it won’t be just you and your partner anymore because there are other parties; and that’s what it means to be in a non-exclusive distribution agreement.
Although a business can prosper with just one distributor, some business owners prefer to cater to their market better by having more and more sellers over time. But, one disadvantage of agreeing to be non-exclusive is that the competition for selling the products will be higher since there are many sellers already. Nevertheless, the decision all lies to the business owner and his priorities for growing his business and introducing his product to the market.
Advantages of Signing In a Non-Exclusive Distribution Agreement
You may think that exclusivity is better. Well, it depends, but most often in the business industry, opening opportunities to many parties can be beneficial. So, get to know below what advantages you can expect to have when you get into a non-exclusive distribution agreement:
1. Cater to a large demography of clients and consumers
When you start to sell products, you must be able to cater to your target market, regardless of wherever part of the world they are. Luckily, it is possible. But, only if you sign and get into a non-exclusive distribution agreement with multiple distributors and sellers. Each distributor will be able to market the products with ease to their already established consumers.
2. Lower risk of loss as compared to exclusive distribution
You might ask why there’s a low risk compared to being in an exclusive distribution agreement? Well, it’s simply because when getting involved in a non-exclusive distribution agreement, distributors won’t have a target number of sales per day. The terms will depend on the distributor and the manufacturer of the products, but most often, distributors only pay for every purchased product from the ones that they ordered.
3. Effective in terms of SEO purposes
This is highly essential, especially in today’s generation where most consumers prefer searching over the internet to find out more about the product instead of testing it out on their own. Therefore, more distributing companies mean more websites who will link and introduce the product to online shoppers and consumers.
9+ Non-Exclusive Distribution Agreement Samples in PDF | DOC
With our non-exclusive distribution agreement form samples, you’ll have a guide in making the contract that you need. It’s all compatible with all devices, downloadable, editable, printable, and above all, free of charge, too! Just go through each sample template one-by-one and choose which suits your business needs and preferences best:
1. Non-Exclusive Distribution Agreement Sample
2. Non-Exclusive Distribution Agreement in PDF
3. Non-Exclusive Distribution Agreement Template
4. Non-Exclusive Distribution Agreement Example
5. Non-Exclusive Whole Sale Distribution Agreement
6. Basic Non-Exclusive Distribution Agreement
7. Non-Exclusive Limited Distribution Agreement
8. Formal Non-Exclusive Distribution Agreement
9. Non-Exclusive Distribution License Agreement
10. Non-Exclusive Distribution Agreement in DOC
What’s In a Non-Exclusive Distribution Agreement Form?
Just like any other retail distribution agreements, a non-exclusive distribution agreement form will have the terms and conditions agreed by the involved parties. Aside from that, it will also state their expectations and the duration of the business agreement. Other essential inclusions of this agreement are the following:
1. Obligations of both parties
Supplier, manufacturer, or distributor, all the involved parties of the agreement should know their roles and obligations. And each of it should be in the agreement itself, specified and explained.
2. Product handling methods
How both parties will order, transfer, and sell the products to the consumers is vital to include in the agreement. Why? So it will clear to all the involved how the product will be handled. In this way, there will be transparency and the preferences of all parties will be catered to.
3. Warranties and liabilities
Business partners should trust each other and give their best for the growth of the business. That’s why warranty and liability statements are essential. The warranty will be the written guarantee of the manufacturer or supplier of the goods that replacements are welcome if the goods are deemed as defective. On the one hand, the liability will serve as a reminder for both parties about their legal responsibilities that they must meet.
Non-exclusive distribution agreement forms may be challenging to create, but with our templates, you’ll have one with ease. Apart from that, you must also consult an attorney or a lawyer who is knowledgeable in making legal agreements and contracts. Why? So you will have someone who will aid you in reviewing, checking, and revising any areas that need some corrections to avoid distributorship dilemmas. Also, negotiating with the other parties is relevant for building and maintaining a great business relationship.
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