How long do you get paid for residual income? Do you still receive it after you leave the company either voluntarily or not?
Total Comments: 2
Posted: Sun Jan 30, 2011 05:09 pm Post Subject: Residual Income
I am looking at becoming an independent rep for a company in a different field that has residual income. In the contract however it states that the residual ends if the if either party terminates the agreement with written notice. My concern is that I bring in a fair amount of business after a year or two and they then cease the agreement I will no longer get paid. The insurance business is the closest thing I cant think of related to my question. I am thinking of adding a clause that keeps the residual income for a period of 2 years or so. Is that fair or should it be something different?
Thanks for your help,
CBW
Posted: Mon Jan 31, 2011 08:27 am Post Subject:
you certainly have a valid concern. to compare it to the insurance business, it's what keeps many captive agents grounded.
but to answer your question about adding a clause to your contract, it really depends on your line of business, and whether or not it is standard practice. perhaps research common contracts in your field and see what the norm is.
I can tell you in the insurance business, adding a clause like that would not fly with companies, but it could fly working for individual agencies.
Posted: Sun Jan 30, 2011 05:09 pm Post Subject: Residual Income
I am looking at becoming an independent rep for a company in a different field that has residual income. In the contract however it states that the residual ends if the if either party terminates the agreement with written notice. My concern is that I bring in a fair amount of business after a year or two and they then cease the agreement I will no longer get paid. The insurance business is the closest thing I cant think of related to my question. I am thinking of adding a clause that keeps the residual income for a period of 2 years or so. Is that fair or should it be something different?
Thanks for your help,
CBW
Posted: Mon Jan 31, 2011 08:27 am Post Subject:
you certainly have a valid concern. to compare it to the insurance business, it's what keeps many captive agents grounded.
but to answer your question about adding a clause to your contract, it really depends on your line of business, and whether or not it is standard practice. perhaps research common contracts in your field and see what the norm is.
I can tell you in the insurance business, adding a clause like that would not fly with companies, but it could fly working for individual agencies.
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