Difference Between Agent and Distributor

agent-broker-dbAgent vs Distributor

Companies rely on agents and distributors for selling their products and services. Agents are not direct sales persons, whereas distributors are the direct salesman of the products. As such, they are different in many aspects.

Agents are really campaigners of the products, and are quite familiar with the market. The agents are in direct relation with the customers, and they have to know the customers and their needs well. The agents are only responsible for selling the products, but they do not have any direct connection with the company. They do not buy the products directly from the companies. The agents are not involved in the delivery or after sales services. The agents have a fixed commission for their work.

Now talking about distributors, they have a direct connection with the company. Unlike the agents, distributors buy the product directly from the company and distribute it in the market. Moreover, distributors also provide after sales services, which the agents do not provide.

While an agent can be called the company’s representative, a distributor cannot be called so, as he buys the product and then resells it. Agents can be direct employees of the companies or self-employed. On the other hand, distributors are not employed.

An agent is responsible for finding the target people and negotiating with them to buy the product. Though the agent has these duties vested on them, they do not have the final word regarding sales; the last word is that of the company. Well, this principle is not applicable to distributors, as they do not have any role in negotiating with the customers; they only perform the role of distributing the product in the market.

Summary:

1. Agents are not direct sales persons, whereas distributors are the direct salesman of the products.
2. The agents are only responsible for selling the products.
3. The agents are not involved in the delivery or after sales services. Unlike the agents, distributors buy the product directly from the company and distribute it in the market. Moreover, distributors also provide after sales services, which the agents do not provide.
4. While an agent can be called the company’s representative, a distributor cannot be called so, as he buys the product and then resells it.
5. An agent is responsible for finding the target people and negotiating with them to buy the product. Distributors do not have any role in negotiating with the customers; they only perform the role of distributing the product in the market.

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