I was a national sales rep for 14 years before switching sides and founding or co-founding 16 start-ups, one of which made the Inc. 500 list three years in a row.

As a result, I feel qualified to speak on this subject which I think is misunderstood and not taught at school. This is why I’ve written Sales Reps: How Manufacturers and Reps Can Better Work With Each Other for Mutual Gain, a comprehensive and practical guide to help sales reps and manufacturers understand each other better, to create a positive partnership that will yield more profits for each, and to extend the duration of the partnership.

Too often this relationship is adversarial. It shouldn’t be, as both factions need each other.

Before I discuss the highlights of this guide, I think I should define what a sales rep is.

A manufacturers’ representative, also known as a sales representative, sales agent, a broker in some industries, or simply a rep, is an independent business person who acts as the sales arm for one or more businesses which comprise one or more products or services. Most reps are paid a commission for their sales efforts rather than a salary. Some reps are permitted to take a draw (or advance) against commissions; others are not. They are responsible for their expenses. The commission can vary greatly — from 2 to 20 percent.

Basically sales reps are entrepreneurs in their own business. It is important to understand this as you can’t order them to do something. You need to sell them on your integrity, agenda, company, product and vision. To do this effectively, you should understand how they think, their strengths and weaknesses, and the environment they work in. This guide should help you with this to achieve a more productive relationship with them. When company leaders want to strengthen their sales abilities, many turn to outsourcing the function by hiring an independent sales rep.

Here are some of the subjects covered in this guide.

Compensation

Reps are primarily paid on a commission basis although in some industries, such as pharmaceuticals, they receive a base salary with performance-based bonus. The wide spread of commission rates (2 to 20 percent) is based on a variety of factors explored in the guide.

Who Becomes a Rep?

There is no sales rep gene; they come from all walks of life and choose the profession for different reasons. They want to be their own boss, they see the opportunity to earn a lot of money as there are no ceilings on their compensation, they know that they can choose which 12 hours a day they want to work, etc.

Why Work With a Rep?

There are two perspectives on this question: that of the manufacturer and that of the customer to whom the rep is selling. Both are covered in detail, but the two main reasons for a manufacturer are they get an experienced salesperson with no fixed cost and quick access to desired customers who are difficult to reach.

The buyer among many reasons prefers a sales rep because they trust them more as they know that the rep depends on them for a living more than the manufacturer does, and the rep is more accessible.

How to Find and Select a Rep

Before you begin the process, you need to think through what you expect from a specific rep, the kind of characteristics he or she should have, their customer base, the other lines they carry, and much more. Finding the right rep is a difficult task, and there are numerous approaches. My most productive methods were to ask buyers on whom the prospective rep calls. They are a gold mine of valuable information to help you in your quest. They not only can identify the most successful reps that call on them but lead you to the most promising newcomers that are not on everyone’s radar yet. They will be able to give you more time and passion. Second: I checked with other good reps that we knew. Reps network with each other and know the difference between good and bad ones. Today with the advent of the internet and the comprehensive searches you can do, I discovered a site (www.rephunter.net) that matches up sales reps and manufacturers to each’s specific needs. And, naturally there is MANA’s Online Directory of manufacturers’ representatives. They are all very professional and worth a look-see.

Rep and Manufacturer Complaints About Each Other

There is a long list of complaints each party has about the other. I believe it’s very helpful to understand what these are. They can help you to help each other, which will profit everyone. The list of complaints that I enumerate are valid and not readily apparent to the other party. If taken seriously, each party can improve the running and effectiveness of their company. Basically, there is a healthy amount of distrust on both sides. A lot of this stems from many of these easily correctable complaints. Trust is the pillar on which effective relationships are built. With it this rep/manufacturer relationship should have a long life.

Training Reps

Many manufacturers give short shrift to the training of a new rep. They make the mistake of sending out catalog sheets or directing them to their website and maybe supplying some samples and expect the orders to roll in — not a formula for success. Would you train a new full-time hire in so casual a manner? The guide offers solid and proven ideas on how to accomplish this training.

A Tip for Reps

This section offers an idea for reps on how to solve a problem many buyers have and in doing so earn themselves more sustainable earnings.

Advice for Both Parties

Here we offer key suggestions to both sides on actions and attitudes they should adopt to make this rep/manufacturer partnership more effective (profits and fun). We also address how to deal with the problem created periodically by many large customers who tell their buyers to stop dealing with reps for the mistaken reason that more profits (the rep’s commissions) will accrue to them. We offer what we did as national reps to solve it.

The Future of Reps

There are many outside world trends — including technology — that indicate that reps may become extinct. I don’t think so if the parties will work closely and with honesty; but it helps to take a step back and think about planning for the future.

Sales Reps: How Manufacturers and Reps Can Better Work with Each Other for Mutual Gain is available on Amazon by going to www.bootstrapping101.com.

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