Sales Promoter Meaning, Definition & Salary

Sales Promoter:-

Sales promoter is basically a person or company who is responsible for Sales, Collection, Sales Accounting and Keeping Documentations Required for Sale Tax, Advertisement & Branding of Company, Collection of statuary Forms like Form C & Form F, Arrangement of Transportation etc on behalf of a company in a specified Region or zone.

Sales Promoter may have a fixed salary but in most of the cases sales promoter gets certain percentage on the Sales Volume of his region against his services (Normally from 1% to 5 % of the sales value net of sales tax like VAT & CST, depending upon the volume of sales).

He may have to deposit some security against which he gets Interest (Normally from 8% to 10%). If any customer in his region makes a default on account of outstanding or statuary Forms (Form C) the same is adjusted against his commission or security deposit.

Sales promoters are appointed by the companies for a specific period of time to boost up its sales in a specific region. Company normally appoints such persons as sales promoters who have a very strong presence in their region. They should have a very good financial position as well as a very good marketing network.

The major difference between a Sales Promoter & a Dealer / Distributor / C&FA is that normally sales promoters are not responsible for stocking company’s materials. Their income is based on Commission not on the discount (Dealer Discount, Turnover Discount, cash discount etc.).

A Sales Promoter is different from a Sales Commission Agent. Commission Agents are normally appointed against specific Project Orders / OEM (Original Equipment Manufacturers) for some predetermined order.  These orders are normally priced at a higher rate than the eligible rate as per company commercial policy. The differences of these two rates are carried forward to the commission agent as overriding commission (After deducting extra payment of account of Excise). Whereas Sales Promoters are appointed against Dealers & Distributors of a specific region. Billings done to these customers are normally as per commercial policy. Sales Promoters gets its commission on the sales volume of the total region.

Sales Promoter may act as Channel Financier on behalf of its Customer & avails Discounts like Cash Discount (Normally 2% to 5%) & Overriding Commission.

Sales Promoter’s target is generally reviewed on Quarterly basis. They have to appoint their own employees for Collection deposit of Cheques & Form C from Customers, Accounting Entries in SAP (Accounting Package like ERP Tally etc.), Liaising with Sales Tax Department, arrangement of Transportation etc.

All in One, Sales Promoter is an integral part of a company who is very much Like an Employee who doesn't work on a Fixed Salary.