Brokers and agents  

Do not take title to goods. Mainly function is to facilitate purchasing and selling, for which they earn a commission on the selling price. In general, specialize by product line or customer types.

Brokers:

Key function is bringing and sellers and buyers together and assisting in negotiation. They are paid by the party who hired them, and don't carry inventory, involved in financing, or assume risk. Examples include food brokers, real estate brokers, security brokers, and insurance brokers.

Agents:

Represent either sellers or buyers on a more permanent basis than brokers do. There are numerous types:

Manufacturers' agents: Represent two or more producer of complementary lines. A formal written agreement along each manufacturer covers pricing, order handling, territories delivery service and warranties, and commission rates. Frequently used in such lines, furniture, apparel and electrical goods.  Most of the manufacturers' agents are small businesses, with only a few skilled salespeople as employees. They are hired by small producer who cannot afford their own field sales forces, and by big manufacturers who use agents to open fresh territories or to cover territories that can't support full-time salespeople.

Selling agents:  Have contractual authority to sell a manufacturer's whole output.  The producer either is not interested in the selling function or feels unqualified. The selling agent serves like a sales department and has important influence over terms, prices and conditions of sale. Found in product areas like industrial machinery, textiles and equipment, coal and coke, chemicals, and metals.

Purchasing agents: In general have a long-term relationship with buyers and make purchases for them, frequently receiving, inspecting, warehousing, and shipping the merchandise to the purchaser. They provide supportive market information to clients and help them get the best goods and prices available.

Commission merchants: Take physical possession of products and negotiate sales. In general, they are not employed on a long-term basis. Used most frequently in agricultural marketing by farmers who do not have desire to sell their own output and do not belong to producers' cooperatives. The commission merchant takes a truckload of commodities to a central market, sells it for the top price, deducts a commission and cost, and remits the balance to the manufacture.