Elsewhere in this issue of Agency Sales, a MANA member invokes the age-old adage, “The only constant is change.” If we can accept the wisdom in those words, they are probably the best way to describe the products/services offering of MANA. If anything, what MANA provides for its members can be termed a moving target in that as members’ needs and wants change, the association is there to assist them.

That’s the message contained in conversations with MANA’s top executives Charley Cohon, president & CEO, and Jerry Leth, vice president and general manager.

Charles Cohon

Among the many activities that MANA has espoused in the past year, Cohon points to the fact that “We’re working overtime to ensure that manufacturers that work with independent agents receive their fair share of attention. Historically there may have been some outliers in the manufacturing community who may not have understood the intricacies of working with reps, but they hardly represent the mainstream of those who have made a concerted effort to work with agents.

“We continue to examine the benefits for manufacturers to work with reps — even though they may not readily recognize those benefits. For instance, on occasions when there is no existing business in a territory, some manufacturers may not recognize the benefit of hiring a highly qualified independent manufacturers’ representative — and paying him a commission or some additional fee — while business is developed. It’s important to realize that this is hardly some sort of conspiracy among reps to receive payment when there is no business; rather, it’s a pragmatic business approach.

Market Development Fee

“Here’s some of the thinking for this approach: In all fairness, if you as a manufacturer want to hire a rep and say ‘I’d like to hire you to work for free for 12 months and then have the option to terminate you,’ what do you think their logical reaction would be? In reality, you’re wasting your and their time. If you want to have access to their services, it makes sense to offer them a deal, let’s call it a market development fee. Certainly, to some degree such agreements are launched more for the benefit of reps. But isn’t it a way for them to be able to earn some income? In truth, the benefit flows both ways. If such agreements weren’t in place, there may be no practical way for a good product to be launched in a new territory by a highly experienced rep. Reps can’t work for free for a year and sustain the business. That concept has been exercised and abandoned. The business people among us recognize we can’t survive that way.

“In any event, MANA has opened the door for that conversation.”

“We have continued to look at creative ways that manufacturers who have no existing business in the territory — and hence no prospect of commission income for a new rep for the first year — can still successfully hire a rep to promote their product.

“Some of those mechanisms include preparing a business plan that includes estimating the cost of developing a new territory and negotiating a mutually agreeable program where the manufacturer shares in that cost through a market development fee. Another is to give a rep who absorbs sales costs during a long sales cycle Life of Part/Life of Program (LOP/LOP) to let the rep recoup sales costs even if the agreement is terminated later.

In addition, Cohon notes that the association has continued its efforts in other areas. For instance, “We have had many successful conversations with reps who contact us when they have been terminated by a major line. We communicate with them not as legal counsel, but to provide them with bullet points on topics to be sure to bring up when they speak to one of the attorneys on MANA’s list.” And, continuing in the legal area, in the past year the association helped defeat a bill that would have re-categorized anyone who had influence over State of California purchasing (i.e. salespeople) as a lobbyist, which would have required extensive lobbyist training in person in Sacramento. This also makes illegal contingent compensation (in other words, you can’t pay reps on commission to call on the state of California.) MANA lobbied the legislature not to pass it, and when it passed, we lobbied the Governor to veto it (he did).

Responding to Needs

Jerry Leth

Emphasizing the need to respond to members’ changing needs and wants, Leth notes, “As their situations change, MANA will change.” A good deal of that change can be seen in the association’s on-going emphasis on “Steps to Rep Professionalism,” which can be found on the association’s website (www.MANAonline.org). According to Leth, “As late as a year ago, what was included in those steps was largely staff-developed. What really had to be done was to get the members engaged in the conversation in order to determine what they needed. The recently comprised MANA Professional Development Council combined their efforts to offer feedback on what was needed to change the program.”

Other examples of MANA enlisting the aid of the membership can be seen in additional special interest groups that will explore and examine opportunities for agents in the aerospace (January 2015, Agency Sales), and international markets. In addition, the recently formed Young Professionals Organization (December 2015, Agency Sales) has been put together to serve as a place where younger people can share best practices, let others know how they’ve solved problems and, in general, just have a place where they can learn from each other.

Leth continued that as presently constituted these groups meet via teleconference to address issues facing them. “It’s all a matter of sharing experiences and learning from each other.”

Special Interest Groups

Leth continued that a rationale for the creation of these special interest groups came about when members communicated that “There are aspects of my relationship with MANA where I need something more in terms of what I’m facing in my industry. By creating a group with a specific interest (i.e., aerospace), we’ve been able to create a home where issues specific to that industry can be addressed.”

When it comes to learning from each other, both Cohon and Leth emphasize the importance of MANA’s continuing efforts of networking with sister rep associations. “From past experience, we’ve learned that virtually all of the other rep associations (e.g., NEMRA, ERA, MAFSI, PTRA, AIM/R, HIRA, etc.) have shared concerns” says Cohon. “We continue to meet with those associations and share solutions to mutual problems.”

An additional opportunity for MANA members to share experiences and learn from each other is the MANA LinkedIn discussion page. According to Cohon, “The LinkedIn page is an ideal forum where MANA members have posed questions, asked advice on business problems and generally sought out assistance from fellow members.”

Whether these or other MANA services (which can be found by visiting the MANA website) meet the needs of association members, both men stress how important it is for the membership to stay involved and make sure they avail themselves of all that is provided for them.

MANA welcomes your comments on this article. Write to us at [email protected].