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What is a company principal?

There are many terms used to describe the word Principal but for all accounts and purposes the Principal of a company is typically the company owner, founder, partner or other person of high rank within the business.

The Principal of the company - whether it's a manufacturer or supplier of a service - will be the person(s) who are directly responsible for the relationship between the agent and company.

Companies may have many reasons for outsourcing their company's sales requirements to self-employed sales agents. These may include:

  • Accessing new Markets where their existing employed sales force have limited knowledge or contacts.
  • Partnering with highly experienced sales reps that have come from a successful sales background.
  • Having their products or services sold alongside other non-competing lines that an agent carries. This ensures a much greater exposure to clients who are potentially needing what you have to sell.
  • Accessing a greater pool of sales talent with relevant industry knowledge.
  • Eliminating the financial risk of employing an in-house sales team.

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