By Jim Straw.

Q: I have come across a manufacturer in China that manufactures a product that would appeal
to the market here in the U.S. Therefore, I contacted the mfr. and expressed my interest to be
an agent for them in the U.S. They responded by saying that they welcomed my inquiry and
that they are in fact, in need of an agent for the U.S. What I want to do is get exclusive
distribution rights for their product in the U.S. Since Im a novice at this, I would appreciate
your direction. What should my next step be?
A: Since the manufacturer in China has already expressed an interest in establishing an agent in
the U.S., all you have to do now is negotiate a deal with them.
If I were doing it (as I have before), my next step would be to write them a letter; something like
this
Dear Mr. (use the name of the person who responded to your inquiry):
Thank you for your kind response to my letter of (date).
In response to your letter of (date), my company would consider it an honor to represent your
product(s) in the U.S. (or, the U.S. & Canada; or, North America) on an exclusive basis.
To that possible end, please provide us with your lowest possible distributor prices, along with
quantity breaks, quoted CIF (name your nearest U.S. Port of Entry).
We have taken the liberty to enclose herewith a preliminary contract for your consideration.
Thank you for your consideration. We are looking forward to hearing from you at your earliest
convenience.
Sincerely,
Along with the letter, enclose a contract for their consideration. You may want to have your
attorney assist you in creating the contract in the proper legal form. The contact could be
something like this
EXCLUSI VE SALES AGREEMENT
This AGREEMENT is made on the dates signed below, by and between (your name) of (your
address); hereinafter referred to as (your one-word name), and (the Chinese company name) of
(their address); hereinafter referred to as (their one-word name):
WHEREAS (Chinese company) is the manufacturer of (name of product) and is desirous of
having said product distributed in the U.S. (or, the U.S. and Canada; or North America);
hereinafter referred to as territory, and,
WHEREAS (your company) is a distributor of such products in the above stated territory;
IT IS AGREED by the parties above named, in consideration of the promises and covenants
hereinafter contained, as follows:
1. (Chinese company) grants to (your company) the exclusive sales and distribution rights to
(name the products) throughout the above territory.
2. (Your company) agrees to diligently sell and distribute (name the products) in accord with the
terms and conditions of this agreement.
3. (Chinese company) agrees to turn over to (your company) any and all orders and inquiries
regarding stated product(s) it shall receive from the territory.
4. (Chinese company) will provide (your company) with all technical data regarding the
products; sales literature, brochures, catalogs, etc. currently in use for the product(s); and any and
all future improvements (Chinese company) may develop relative to such product(s).
5. (Your company) agrees to buy the stated products exclusive from (Chinese company) and
refrain from marketing similar products in competition with (Chinese company).
6. (Chinese company) agrees to maintain production capacity capable of supplying the orders
produced by (your company).
7. (Your company) agrees to sell a minimum of XXX units (the quantity of products you plan to
sell) of (Chinese company) product(s) during the first year of this agreement. Should (your
company) not sell XXX units within the first year, it shall be to the determination of (Chinese
company) whether or not this agreement shall be continued for additional years. This agreement
shall renew automatically for additional years so long as a minimum of XXX units of the product
are sold each year. (Define what one unit of the product is to be.)
8. (Your company) shall have the sole discretion to determine the methods of merchandising the
products under this contract.
9. (Your company) has the unfettered right to, and may, assign its rights and obligations under
this agreement to a third party.
We, the undersigned, agree to the terms and conditions of this agreement on the below written
dates.
Signatures:
Note: Be sure the products you are going to be selling can legally be imported into this
country. At one time, in the mid-1960s, I had the exclusive rights to sell a Magnetic
Therapy machine from Japan in the U.S. Only problem was, the F.D.A. forbid its import
because of its unfounded medical claims. Today over 30 years later Magnetic Therapy
has gained acceptance; without F.D.A. approval. So, check the product out with the Department
of Commerce before you agree to sell something you cant legally import into the U.S.
Although I, personally, have used letters and agreements similar to the above over the years, I
went to the works written by the known authority on Exclusive Distribution Rights the man
the media call The Millionaire Maker my dear friend, E. Joseph Cossman, for most of the
wording above (rather than digging through my own archives it was easier to find a draft copy
in Joes course and edit it for you).
If you are really and truly interested in acquiring Exclusive Distribution Rights to products
and, more importantly learning how to effectively market those products, once you have the
exclusive rights do yourself a favor go to your local bookstore and buy any book you can
find by E. Joseph Cossman. Then again, if you wanna get the best of Joes material, go directly
to his website at: http://www.cossman.com and take a close look at his Home Study Course
youll be glad you did!