Member Discussion

Do Distributers Ever Pay Commissions To Integrators For End-User Sales?

Scenario is Integrator connects End-user and Distributer and lets them negotiate product price and payment terms without him. Once End-user pays in full, Distributer sends Integrator a commision check...

Common practice?

I don't think this is common for the simple reason that integrators want to re-sell / sell to end users directly.

I was thinking about two different cases

  1. when a small integrator is dealing with a large end-user and the end-user demands to negotiate product directly with distribution.
  2. when a B- integrator is dealing with a project that requires more credit than the distributor wishes to extend to the integrator directly, but the end-user is A+.

But in either case, are any commisions really just kickbacks? Are kickbacks like this ever/never/always illegal?