Recruiting Reps? Good Luck….

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This article may seem to be focused on manufacturers, but read on reps.

I’m writing while engaged in a rep-recruiting project for a mid-sized manufacturer. The product, industry, and location are irrelevant. What I have encountered is significant.

Detailed Preparation

The manufacturer has been willing to spend the time and money to organize this search very completely. We recognized that there have to be many positive factors to gain interest. Our products can’t be number 1-2-3 commission payers, but we do pay about 50 percent more than the average line on the rep’s line card. Therefore, commissions from this line can add up to significance faster. I tell the prospective reps, “Our goal is to get to be 5-10 percent of your commission income within 2 years.”

I have consistently told reps to drop any line that does not provide 5 percent of their commission income or have the potential to be 5 percent within 12 months. Many reps still argue with me about dropping lines, but it has been consistently proven that the rep firm grows and increases commission significantly by dropping lesser lines. And, the rep firm avoids alienating smaller lines where they are not able to do a good job. Sales managers from companies that have lines that are dropped indicate respect for the rep firm that says: “We can’t do the job for you. Thank you for the opportunity. We can [where possible] recommend a few rep firms that might be better suited to your line.”

Prospective reps were selected from the MANA database using key words. Subsequently, the president of the company reviewed a list of more than 1000 reps and narrowed it down using the areas of concentration supplied by the reps in their MANA profile.

This list of 165 reps was then prioritized into three categories, 1, 2, and 3. We are still in process of dealing with the number 1 priority reps so I cannot yet comment on the value of the prioritization. After several hundred calls and e-mails, I have been led to question the value of the “3” category.

We are discussing adding another list, if we can find one, in addition to these reps.

Collateral Tools

I feel very strongly that the prospective reps must see the soliciting company as smart, organized and marketing savvy.

In order to support the search effort, the company prepared a seven-minute company video that provides a thorough picture of the manufacturing process, the product quality and the people. There is significant value for the company in having the video, but this project provided the impetus to make the video.

In addition, a graphic designer we work with provided a PowerPoint equivalent in the form of an “Interactive PDF.” This document can be sent as an attachment to an e-mail, opened by the recipient while on the phone with me, the interviewer, and then viewed as we talk about the company and the program to acquire reps.

Complete Package

Additional support is provided by a cover letter from the president and several pieces of collateral material the company already has including a full line catalog and specific success story references to customers that should interest reps who have interest in the line.

This package is only sent to reps that I, as the interviewer, have talked to and who have expressed definite interest in moving the conversation further.

Experience Teaches

The initial plan called for our sending an e-mail to the reps along with a copy of one of my articles from Agency Sales. We felt that the article would add credibility to the e-mail indicating my desire for the receiving rep to call me.

Lousy Batting Average

After contacting the first 40 reps we received three responses, and those took over a week to be received. It was clear that this approach was not going to work.

Change Direction

The initial e-mail was modified to say that I would be calling the rep. Naturally, this expanded the amount of work and time involved in the project.

After contacting a few of the reps, I realized that this was going to be a tedious and potentially unrewarding process.

Adding A Second E-mail

At this point I added a step. Most of the direct, telephone contacts went to voice mail. I amended my voice mail message to say that I was sending a second e-mail with more detailed material for them to review about the company and products.

At this point, I created a new e-mail and attached the Interactive PDF so that they could review the company and products on their own.

This step has resulted in more success getting a response from the reps.

We are not selling. We are “discussing.” The goal is to reach the Priority 1 reps and determine if there is any interest. We estimate the value of adding a rep at $ 250,000-500,000 in annual revenue. Therefore, the incremental value of adding 5-10 reps is very significant. That is what makes this huge effort worthwhile.

The process has been enhanced with the second e‑mail and sending the Inter-active PDF. The dialog with either the rep and his team or the rep with me is much more likely and much more focused.

We have been turned down frequently for many different reasons. In the majority of the turn downs, the client’s line just does not fit with the line card of the rep. In one case, a very rude rep basically told me not to bother him; he had no time to look at anything new and his line card was full.

Obviously, I’ll probably never hear of the rep again, but if there is ever an occasion to take him and his firm off a list of prospective reps for a really great line that already pays significant commission in his territory, you can be sure that I will. Why do people behave this way?

Three out of the first 30 contacts have been moved to step 2 — receiving the package from the president and further discussions.

Again, the inefficiency of the system became evident when I followed up with one of our “Hot! Prospects.” He wrote back, “Oops, we were out of town and did not receive the UPS shipment from your client, sorry! We’ll get on it and get back to you.” My thought, “Soon, I hope.”

There is lots of room for frustration in this process.

Summary

Preparation is proving to be vital in this search. But, regardless of preparation, the process is a long slog through calls, e-mails and voice mails. Even reps with the best intentions are difficult to reach and it can be hard to schedule time with them to discuss the line.

One rep who is a good friend of mine has gotten back to me, but between sales trips, sales meetings, vacation, and holidays we have been communicating for three weeks without getting a chance to discuss this potential line.

The project is much more difficult if you do not have reps in the market segment you are looking to develop. Be prepared for the long slog. The more successful your current rep program, the more likely you can shortcut the task by getting prospective rep names from your existing reps.

And reps, think about what the company that is trying to talk to you looks like. If they are well-prepared, organized and very professional, how about giving them a break? You never know when you can find some gold in them there e-mails.

End of article

John Haskell, Dr. Revenue®, is a professional speaker and marketing/sales consultant with more than 40 years’ experience working with companies utilizing manufacturers’ reps and helping rep firms. He has created the Principal Relations X-Ray, spoken to hundreds of rep associations and groups, including 32 programs for MANA from 2001 to 2005. He is also a regular contributor to Agency Sales magazine. For more information see drrevenue. com or contact [email protected].