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“How do I get more of my reps’ time?”
“What can I do to get them to keep me informed about what’s happening in the territory?” “Why don’t my reps effectively carry my marketing message to customers?”

These questions are hardly new, but they did come to the fore this summer when a group of manufacturers participated in a roundtable discussion.

The consensus of the group of five manufacturers was that the answers to these and other questions reside in the word ‘motivation.’ “In order to be truly successful in managing a team of agents, the principals must take into account all of the many factors that are regularly identified as positive motivators, and they must be used regularly as part of your total management program, not as bail-out techniques when sales dip. Success depends on a systematic approach.”

The group went on to identify several factors that contribute most heavily when it comes to realizing success when selling with agents. Included in those motivators are:

• Taking care when selecting agents — Complete and thorough selection techniques are the foundation of a sound agency sales force. But the selection itself is not really a motivational tool, however. When the characteristics of a successful agent for your company are carefully spelled out, the chances are in the manufacturer’s favor that the agents selected will be more responsive to both the economic and non-economic factors of motivation. An important point that was noted by one manufacturer when it came to choosing agents is that “The manufacturer must keep in mind that when you recruit an agent, you are not looking for an employee — what you’re really looking for is a working partner. Remember that fact and the relationship will be much more beneficial for both sides.”
• The need for communication and feedback — When considering the subject of communication, all manner of communicating must be included — reports, meetings, newsletters, phone, email, etc. What this means is that all the communication tools that are employed must be geared to letting agents know reliably, clearly and accurately exactly how they are performing for you.
• Timely and accurate compensation — It’s no surprise to anyone that money remains the most powerful motivator. The agent is fully aware that his income is directly proportional to the effort that he puts into the business. Bottom line, he’s motivated to make money and is not only willing, but enthusiastic and anxious to work for it. That’s why it’s incumbent for the principal to see to it that the compensation is timely and accurate.
• Effective training — Manufacturers and their agents know that without training, the agent sales team will never be effective. Furthermore, historically agents have reported that the most important element their principals can provide them is the most up-to-date product information and training.
• Quality and type of management — Sound, fair and intelligent management is as much a motivator as timely and accurate compensation. People, naturally including agents, are motivated by people who impress them, who show good leadership skills, and who have a professional and fair outlook on the practical aspects of business.

A Member of the Family

Not ready to let the subject of motivation rest, another principal added another factor she thought was important when it comes to maximizing agents’ efforts. According to the manufacturer, “From the very beginning of setting up our rep network, we recognized the fact that reps are entrepreneurs or veritable ‘free spirits’ who are determined to run their own operations. At the same time, however, they still like to know that they are working for a group that recognizes and values their contributions. They like to know that the principals they represent are growing, dynamic and exciting companies. In a real sense, agents can tap in on the feeling of excitement that exists and translate that into their own enthusiasm. But, they can only do that, if the principal treats them as an integral part of the sales and marketing organization. For more than three decades of working with agents, I’ve found that those companies who have that infectious enthusiasm usually have more successful agents. What I’m talking about here is creating and communicating a sense of dynamic synergy that keeps things rolling in contrast to a dull, lackluster environment which seems to infect agents with their own pessimism.”

Negative Approach Results in Positive Results

When the subject of training agents was discussed earlier, one manufacturer jumped at the chance to describe his somewhat “negative” approach when it comes to training. According to the manufacturer, his negative process involves making available to this agents a complaint file that grew out of customer comments.

“From these comments or complaints, our reps are able to discern what kinds of problems they can anticipate and more important, how they can be effectively handled. Our thinking is that one of the best ways to forestall problems is to have everyone (e.g., agents) know what has happened and what can happen. They can then tailor their presentations in order to emphasize the strengths of the products and to be ready for questions that might be asked. We’ve done this for years, and it’s truly been effective.”

Beginning the Process

A manufacturer was admittedly on the fence when it came to deciding whether to move from his direct sales staff to an independent representative network. According to the manufacturer, “We’re a fairly small operation that has had some real success in opening doors with a number of important customers. The one thing that has stood out for us with our direct sales staff is that they’re expensive to support and maintain. Expenses aside, if we make the move to reps, how do I know I will get more attention or at least my fair share of attention from the reps I chose?”

After directing this question to a few of his non-competitive manufacturing peers, one answer he received in response stood out from the others: “It’s not the time your product gets that is most important; rather, it’s the quality of effort and attention it gets. And you can get the quality effort and attention by being a ‘partner’ with your agencies, rather than just someone who has products to sell. The manufacturer-agency relationship is truly a partnership. You will be working with sales companies, not just individuals. You should be prepared to give them all the help you might ordinarily give to a team of salaried salespeople.”

The advice didn’t stop there: “It’s critical that you keep your agents in the communication loop. Respond promptly to their information and quotation requests. Give them quality products to sell and make on-time delivery. Consider it just as important to pay them their commission check on time as you would pay an employee’s salary.

“Finally, you should do everything to promote your product and support the agent that you would ordinarily do if you were selling by any other method. It really isn’t a question of getting more of your agents’ time. It’s helping your agent make the most of the time that he or she spends when face-to-face with your customers and prospects.”

Supporting a Training Philosophy

After making a considerable addition to the company budget to cover training for its outsourced sales force, a manufacturer contacted Agency Sales to describe why he did what he did: “From talking to others, I’d have to say that a great number of people view training as just some sort of a one-shot deal. What they do is run a program and expect results will follow and last forever. Believe me, it doesn’t work that way.

“It’s been my experience that training should continue for the people who have already been exposed to the program, and for those who have joined the firm after the last session. Follow-up training, at least of the type we advocate for people who work with agents, should be somewhat informal. In fact, most trainers agree that well-controlled group discussions with the introduction of special topics are the best.

“Trainers running such programs should announce the topics to be covered well in advance of any training meeting, and he or she should assign specific responsibilities for each participant. Reports on progress should be included along with ideas on innovative ways to implement sales programs. After each presentation, there should be an open forum in which each person is asked to discuss specific successes, or specific problems that others in the group might be able to help solve. The group becomes supportive of its collective goals, and it also provides individual support for members who might have specific problems.”