A distributor buys products for its own account and is compensated by the markup it receives upon the resale of the products to its customers. A distributor is authorized to sell products in designated territory and bears all commercial risks associated with the sale. On the other hand, a commercial agent and sales representative do not buy or sell goods or services for their own account. They are authorized to solicit orders in a designated territory and are compensated by a salary or a commission based on actual sales. They usually bear no credit risk with respect to the customers.