Are freelance sales agents paid a salary?
The simple answer is no - Freelance sales agents are not paid a regular wage or salary by the company Principals they work with. Instead they work on a commission-only basis, here's why...
In-house employees are paid a wage or salary by the company they work for under a contract of employment and a wage is essentially offered to purchase that individuals full time and dedication to that company alone.
In return, an employee is expected to work exclusively for that company under a strict set of rules put in-place for employees. These rules might include making it mandatory to work from the company's offices, specific daily working hours as-well-as not being able to work with any other company during that person's employment.
Freelance sales agents on the other hand are self-employed.
They work for themselves and run their own sales agencies where the goal is to partner with multiple company Principals and build a comprehensive range of non-competing, complementary product lines and services which they can sell into their existing networks of contacts.
They are not looking to offer their services exclusively and therefore do not ask for or expect a wage or salary to be paid to them, instead freelance sales agents are compensated by way of commission payments based on the sales they close.
There are some instances where a company will pay what's known as a retainer fee to a freelance sales rep however, typically that's only the case when the agent agrees to spend time and resources developing a new territory where the company has no existing brand presence.
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