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  1. #1
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    Sep 2020
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    Thumbs up Is this a legal sales practice?

    I work for a small company on salary. I do a little of everything at the company including sales in which I receive commission. I've been working on closing a fairly large deal over the last 3 months and it's now in the client's hands to make a decision. Our product is to be paired up as a sample with one of his products that he is selling en masse. His product has generated tons of interest from big organizations, but he's only got a few sales reps and they're having trouble with closing deals. He's asked that I work independently for him to hopefully help close some of these deals and I would receive a commission for this. If I close these deals it would also generate sales at my core company and this deal would be massive for the company and myself. There has been no deal of its size or even close to it's size in the history of the company. Closing the deal would give me commission as an independent contractor and then also commission on my core company's product that would be sold with it. This would be greatly beneficial for all parties involved and everyone would have a clear understanding of what was going on. Is this considered an illegal conflict of interest or anything else that I would need to be aware of? I appreciate any advice on this truly. Thanks ahead of time and if there any more details I need to provide please let me know

  2. #2
    Join Date
    Mar 2013
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    18,241

    Default Re: Is this a legal sales practice?

    Quote Quoting MHackett
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    Is this considered an illegal conflict of interest or anything else that I would need to be aware of?
    This is simple.

    Get written permission from your employer and all is good.

    Conceal the arrangement or do it without permission and you risk losing both jobs.

  3. #3
    Join Date
    Oct 2014
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    Default Re: Is this a legal sales practice?

    Quote Quoting MHackett
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    Is this considered an illegal conflict of interest or anything else that I would need to be aware of? I appreciate any advice on this truly. Thanks ahead of time and if there any more details I need to provide please let me know
    What you describe is not a kickback or conflict of interest. So long as both companies are aware of what you are doing and are fine with it I don't see any problems just given the facts you've provided.

  4. #4
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    Nov 2013
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    Default Re: Is this a legal sales practice?

    Quote Quoting Taxing Matters
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    What you describe is not a kickback or conflict of interest. So long as both companies are aware of what you are doing and are fine with it I don't see any problems just given the facts you've provided.
    If OP was a sales rep. working for his core company (and other companies) on a commission basis I would agree with you. But he isn't. He is a salaried employee of his core company and it raises issues of a conflict of interest in negotiating a deal between the two companies. For example: at what price will his company be selling there product to the other company for? Who's interest is he negotiating for; his, the company he works for, or the company he is selling to? His employer won't allow it IMO.

    On who's time will you be working these deals?

  5. #5
    Join Date
    Jul 2018
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    2,693

    Default Re: Is this a legal sales practice?

    There's nothing illegal about what you described, but your current employer and/or it's client might not like it.

  6. #6
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    Sep 2020
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    Default Re: Is this a legal sales practice?

    Quote Quoting budwad
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    If OP was a sales rep. working for his core company (and other companies) on a commission basis I would agree with you. But he isn't. He is a salaried employee of his core company and it raises issues of a conflict of interest in negotiating a deal between the two companies. For example: at what price will his company be selling there product to the other company for? Who's interest is he negotiating for; his, the company he works for, or the company he is selling to? His employer won't allow it IMO.

    On who's time will you be working these deals?

    Thank you for the response everyone. To answer some further details with you, the price was already negotiated with them before the second company hired me on. I'm working the sales on my own time, not during my 40 hours a week. And both parties know of the situation and are ok with it as long as there is no legal issues. IF I close these deals it will be greatly beneficial to all parties involved. It will help our company and my employer in closing a massive deal that will change our company forever. And the other party has asked me several times to help him so that he can get his product sold. Lastly, I would receive a good commission from both parties for helping them both out on this.

  7. #7
    Join Date
    Oct 2016
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    4,289

    Default Re: Is this a legal sales practice?

    The only legal issues would be those brought up by the two employers.

    I'd suggest you get it in writing from both that they are "OK" with it.

  8. #8
    Join Date
    Oct 2014
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    8,209

    Default Re: Is this a legal sales practice?

    Quote Quoting budwad
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    He is a salaried employee of his core company and it raises issues of a conflict of interest in negotiating a deal between the two companies. For example: at what price will his company be selling there product to the other company for? Who's interest is he negotiating for; his, the company he works for, or the company he is selling to? His employer won't allow it IMO.
    Whether his employer will allow it is, of course, up to the employer. But I don't see a conflict of interest given these facts, whether he's salary or gets a commission with his employer. In any event, it is nothing illegal. If both companies are aware of the arrangement and are happy with it the OP should have no trouble here.

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