A vendor contract (otherwise known as a vendor agreement) is a business contract between two parties covering the exchange of goods or services in return for compensation. Vendor contracts establish the business relationship conditions and include details on each party's obligations under the contract.
A distribution agreement, also known as a distributor agreement, is a contract between a supplying company with products to sell and another company that markets and sells the products. The distributor agrees to buy products from the supplier company and sell them to clients within certain geographical areas.
An agreement of license between a trademark owner and a manufacturer is an official document that states that the manufacturer of a product has the permission to manufacture the product by the company or the individual who has trademarked it.
A distribution agreement is a contract between a manufacturer and a distributor. The manufacturer grants the distributor the right to sell its products or services in a specified territory or market.
This is a manufacturing agreement, under which the manufacturer is obligated to produce and supply products that are specified by the customer. Typically, a detailed product specification will be provided, and this may be incorporated into the agreement or supplied as and when required by the customer.
Differences between agency and distribution An agent is appointed to negotiate or conclude contracts on the supplier's behalf. A distributor effectively becomes the supplier and contracts are made directly between the distributor and the customer.
Permission vs. Ownership: A licensing agreement grants the licensee permission to use or sell the licensed product. In contrast, a distribution agreement allows the distributor to sell and distribute the supplier's product as their own.
A distributor offering services will take a percentage of gross revenue, usually 15-20%, but sometimes as high as 50%. Read the fine print of any deal you're thinking of signing and have it looked over by a reputable entertainment lawyer.
The best way to find the best deals for your needs is to research and compare different offers, different labels and distributors, which will help you get the most out of your music. Start your research by looking at the market share of a company and see companies they distribute to, among other things.