Usually, representatives work on a commission basis, assume no risk or responsibility, and are under contract for a defined period of time. Contracts also specify territory, terms of sale, method of compensation, as well as reasons and procedures for termination of the contract. Sales representatives can operate exclusively or non-exclusively. Foreign distributors are merchants who purchase merchandise from a U.S. exporter and resell it at a profit. Usually, the distributor provides product support and service, and carries an inventory of products, a supply of spare parts, and maintains sufficient facilities and personnel required to provide service.
Distributors usually carry a range of non-competing, complementary product lines.
Contracts specify terms of payment and length of the relationship between the U.S. company and the distributor. It is possible to start out with a short trial period and then extend the length of the contract if all goes well. Selling directly to foreign retailers is another possibility for direct exporting. Traveling sales representatives directly contact foreign retailers, or catalogs and brochures can be mailed to retailers. Selling directly to end-users is one other option.