Stop-Look-Listen — The Guts of the Rep Business

© Snežana Ignjatović | Dreamstime.com

After 40 years of working with independent manufacturers’ representatives it is clear that they are not successful just because they are good salespeople. As a matter of fact, sales success can be an impediment to success as an agency owner.

That sounds contrarian. Agents are salespeople, therefore a firm needs to be owned and run by a great salesperson.

No! Many times really great salespeople fail at owning and running an agency.

Sometimes being successful when your firm is small is not an assurance of success as you get larger.

The bottom line for agency success is founded on thinking. Taking the time to think about your business means that you are working on your business rather than “in” your business.

If you are an agency owner, stop — ask yourself, “When is the last time that I spent two uninterrupted hours thinking about my business and what do I have to do to make the business more successful?” Then ask yourself, “If I stopped to think, what did I do with my thoughts and did I implement a tactical program to achieve those specific goals?

Tactics Not Strategy

The agency business is an “in-the-trenches” business. Agents make their living on the street, in front of customers, working with principals, developing sales programs for end users and following up by selling their success to new principals, customers and end users.

Agents are not long-term thinkers. They are not paid to think of big picture items. They are paid to bring in the business and make the sales situation successful — selling products that will meet customer needs is the goal of the independent manufacturers’ representative regardless of the business or industry.

Look at Everything!

The agent who manages to stop has taken the first step on the path to success. But, he or she is a long way from successful. When the agent stops to think and work on the business, a lot of what he or she needs to do is zero in on all of the key aspects of his or her business.

Start With Your Line Card

Just this week in a series of meetings with an agency, I was reminded how important it is to deal with the line card frequently and creatively. In this case we have pared down the number of lines over the past few years, but we still have a few lines that do not produce sufficient income to justify our efforts. Furthermore, the manufacturers of certain products are not doing what we need to move their line into a position of success for our agency business. We have to come to grips with a decision regarding the future of our representation of that product line.

Every independent agency should be evaluating every line regularly. Looking very critically at the lines we carry is the first step to incremental success for an agency business. Knowing the size and nature of the opportunities with each line and with each core customer is the starting point for effective planning for the firm.

Branch Office Functions

Recognizing that the agency is the Branch Office for the principal in the territory means that you, the leader, are looking around at everything you do for the principal and evaluating how that effort translates into incremental commission income. All of the branch office functions are important to the principal.

One of the most important tasks the Branch Office has is “Lead Follow Up.” If the principal has provided one or a number of leads the key activity for the agency is follow up. After the follow up, letting the principal know that the lead has been contacted and this is what happened or is happening means that the agent is adding value and making the firm a true Branch Office.

Listen! Listen! Listen!

Reps are salespeople. Reps love to talk to customers, to principals, to old ladies on the street. A rep will strike up a conversation with anyone. Reps find it very hard to be quiet for more than two minutes at a time.

Looking at agency success or lack of success often starts with helping the agent learn to shut up and listen — closing your mouth and listening is often the start of changes that create great success.

The Spiral Notebook of Success

If we can get agents to do one new thing to help their business it is to go buy a spiral notebook and a new pen. Then the next time you are talking to a customer or principal take out your notebook. When he or she starts to speak, open your notebook and make some notes on what is being said. Perhaps think of the conversation in terms of your business and what he or she is telling you about your business, your branch office, your approach to the agency business.

Don’t worry about doing anything with your notes. Perhaps you will have several discussions with valuable customers and your principals. Save your notes and on a day when you decide to work on your business review these notes — you will be very pleasantly surprised to realize how much valuable content you have, just because you listened and took notes.

Agents who stop, look and listen — win!

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