In the previous two issues of Agency Sales, the importance of presentations has been examined. The February issue studied the importance of the independent manufacturers’ rep’s presentation to the customer. That was followed in March by an examination of how the rep should tailor his approach to a prospective principal.

This month the “presentation” focus shifts to how a principal should craft its presentation to a prospective independent manufacturers’ representative.

In an article that follows this one, individuals who have been involved in the principal-to-rep presentation offer their views. Among the opinions offered by those individuals, there’s a consensus that the principal’s approach to a rep should be viewed in a similar fashion as one would view a typical sales call. At the same time, there’s agreement that from the very beginning of that approach, there are a number of factors that principals should keep in mind.

This a subject that has been addressed previously in these pages and perhaps no one has done a better job of it than Bill Krause, past chairman of the MANA board and District 7 director. Krause, who died in 2005, was the co-founder of Momentum Metals, Inc., Dallas, Texas. He took aim at the subject of principals soliciting reps when he wrote about it in an article entitled “Advertising for Agents?” (Reprinted in November 2015, Agency Sales.)

According to Krause, when principals experience a lack of success in their initial efforts with advertising for representation it could be for one of the following reasons:

• The target territory may have an abundance of companies making the same product as yours; too much competition.
• Prospective agents may already be selling a line competitive with yours.
• Agents in the targeted territory already have all the lines they can handle.
• Your line is not compatible with those of their other principals.

These are all plausible explanations for a lackluster response to ads soliciting representation, but more often the correct explanation is “none of the above.” The odds are excellent that the major reason your ads are not receiving the attention you want is attributable to the ads themselves.

The typical young manufacturing firm devotes its energy to manufacturing, not advertising. Often it lacks the experience required to create an ad that “sells.” Furthermore, a firm might easily assume that all agents eagerly scan the classified columns in Agency Sales magazine and can’t wait to solicit the lines that are advertised there.

While some agents — mostly those new to the business — do fit that category, there are many other experienced agents with a full complement of principals who skim through the classifieds, finding little to attract their attention. Too many of the ads are similar in content and style. They have no outstanding features that reach out and grab the reader.

One of the major errors manufacturers make when crafting an ad to attract reps is to use the term “All MANA territories open.” What the advertiser is telling the professional agent is that this principal is a novice when it comes to working with agents, the company is revealing that it has no agents at present, and this presumed lack of experience is a definite barrier to attracting a professional sales representative. Most agents have, at one time or another, signed on with a firm new to the agency style of marketing and are painfully aware of the many problems that can occur in a start-up program. Agents prefer to align themselves with companies that are veterans of the agent-principal relationship.

Another misstep is to use the terminology “seeking aggressive agents.” The term “aggressive” denotes a certain lack of perception about the agent’s method of doing business. The word suggests that one particular characteristic is necessary to generate sales. Agents exist solely on commissions and thus must generate sales whether their approach fits into an aggressive mold or not. Your best prospective agent may be one who has succeeded by working smart instead of aggressively.

Red Flags

Finally, asking for a reply to gmail, aol, yahoo or some other e-mail address not tied to your internet domain further dilutes any interest an agent might have had. Without a company location the agent has no idea in what part of the country — or what country — your plant is located. This can have a real bearing on the decision to reply to your ad. Some sales representatives simply mistrust companies that will not identify themselves in an ad. This characteristic sends up a red flag to the agent, who worries that a tendency toward secrecy may mean trouble in future relations with such a principal.

A key fact that should be presented to prospective reps is whether or not you’re working with agents now. Without this knowledge — or with a concern that your company is a beginner in this field — a prospective candidate is bound to be wary of answering any ad.

Another matter of vital interest is the support that is available to the agent in terms of capable inside personnel and company willingness to visit the territory when their assistance is needed.

Highlighting your existing business in the territory tells an agent that you can be competitive in his area. Yes, you will attract some agents interested basically in easy commissions, but the professional agent will also pay more attention to your solicitation when he knows you have some knowledge of the business climate in his backyard.

If you’re just starting with agents, you can’t boast about current success, but you can say that you’re targeting MANA areas 13 and 15, or specify states. This disguises the fact that you’re new to agency marketing and is also good business practice. Firms just beginning to market through agents should start cautiously, in two or three territories. This approach will limit your early mistakes — and you will make some — to just two or three sales representatives. As you learn the do’s and don’ts of the business, you can expand into more territories.

“Proven competitiveness” is a real attention getter. Lack of this vital advantage is one of the major worries of sales agents seeking new lines. The introduction of a new line means a real investment of an agent’s time in learning the new products and, as mentioned above, involves a fair monetary expenditure. If you can demonstrate this point, you’ll go a long way toward creating interest on the part of the reader. But be able to prove it! If you can’t give examples in the prospective agent’s territory, have other proof available that leaves no doubt about your ability to meet competition.

Extended Termination

An increasingly common feature of today’s contracts is an extension of the termination clause to reward long-term relationships. If your contract has a 30-day termination stipulation without some room for a longer termination period, interest will lag. Some firms extend the termination period 30 days for each year of service, up to a year. There are many variations on this basic theme that will make your contract look more attractive.

Advertising and sales promotion are two features that always attract attention, provided they’re not just window dressing. Proving that you have ongoing programs to develop sales leads is very helpful. Today it is difficult to virtually impossible to get results from cold calls; sales leads give direction to a sales call and make appointments easier to obtain.

Another profitable aspect of an advertising program can be how you handle sales inquiries. Keeping the agent in the loop when responding to web inquiries is appreciated. You probably know the going commission rate for your product. Bump it up just slightly, or more. You’d be surprised what a difference it will make. Or pay a bonus for new accounts, or a higher commission for a year for a new customer. Don’t be a follower, be a leader.

At this point leave the door open for further discussion; ask the agent to respond with ideas of what he or she can do for you.

These are some of the things agents want to know when they read an ad soliciting representation for their area. There are other questions you can anticipate depending upon your company’s position on these points. In summary, below is a list of criteria that you can consider when placing your next ad for agents.

Advertising Criteria

• Do you currently sell nationally or regionally?
• Can you be competitive in our area?
• How long have you worked with sales agents?
• What is the average tenure of your sales agents?
• Why are you looking for agents in our area?
• What type of advertising and sales promotion do you offer?
• How complete and user-friendly is your website?
• What kind of field service can we expect?
• What are your lead times?
• How many inside sales support personnel?
• Tell us about your contract.
• Do you have any existing customers in our area?
• May we contact several of your current agents?

Krause concluded by noting that the relationship between a manufacturer and its representatives resembles a partnership rather than a boss-employee relationship. Keep this philosophy in mind when creating your next advertisement for manufacturers’ representatives, and you’ll design an appeal that should prompt responses that will make your advertising dollar worthwhile.

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