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In this article, and the one that follows, Agency Sales will explore how and why an individual might decide to become an independent manufacturers’ representative. Conversations with any number of MANA members demonstrate that it’s the minority who actually began their professional careers with the goal of becoming a rep. A number who have set that as their goal have done so primarily because they were related to the owner of an agency. In other words, they probably grew up in the profession.

As a result, those individuals occupy a position where they are the heir apparent to agency owners. The majority, however, have worked their way through a number of sales and marketing positions — very often on the manufacturing side of the desk — before they decide to make the move to become a rep. The logical questions here are why would someone want to be a rep and what attributes should the individual possess in order to follow that career path?

A major attraction to being a rep would appear to be the freedom to do what they are good at — to be able to go behind the restrictions often found in the traditional climb up a corporate ladder. These restrictions include both position and income limitations.

The fact remains, however, that the majority of people who start their own agencies usually do so to be able to grow when they feel they face limits in their present positions. On top of that there is the ever-present goal of achieving personal freedom. Many prospective reps either see that they can go no further in their companies, or they see the company is not doing things the way they feel they ought to be done. Others might dislike having their income capped — especially at the level of fellow workers who only perform at mediocre levels.

When someone who has a background in sales and a detailed knowledge of a specific industry makes the decision to become a rep, there are a number of variables that ought to be put on the table before testing the waters. We know you’ve heard this before, but since there are questions to be answered, it’s wise to come up with those answers so we’re able to “look before we leap.”

Considering Qualifications

If an individual is 60 years old, has just been laid off from their last job and are by any number of considerations virtually unemployable, let’s say the possibility of becoming a rep may not be the path to follow.

It’s this category of person who is exactly at the wrong place in his life to be making that kind of decision. There’s an excellent chance he’ll feel the pressure, let problems distract him from selling and running his business, and will ultimately lose his savings.

Instead of the 60-year-old, virtually unemployable individual, consider someone in their late 30s to mid-50s, married, with 10-20 years corporate sales experience, mostly in the same industry they desire to rep in, with enough savings or equity in his home to get by, that gives you something more positive to work with.

But there’s more — are you the type of person who is an employee or an entrepreneur? If you’re the former and would miss the comfort and predictability of the weekly paycheck — don’t take that step. Be advised, however, that in today’s corporate world, there can be a great deal less security than in owning your own small business — and the majority of agencies are small businesses.

If there’s a genuine “fire in your belly” (as will be demonstrated in the article that follows this one) to be your own boss, write your own ticket, pave your own way, take risks and be the master of your own universe, take a step and make the move.

Be careful, though — even if you describe yourself as a risk taker, that doesn’t mean you should be moving forward without a plan. It’s really not enough that you can point to a relatively successful past history in sales. What you’ve got to be able to do is develop your business skills and plan for the future. Simply put, your business plan points you in the direction you want to be traveling — just as a road map will guide you to your destination. Included in this business plan, which many successful reps share and update their principals, are the following:

• Mission and vision statements.
• A financial plan that mirrors the text of your plan.
• Measureable objectives you hope to achieve.
• Strategies and action plans that will lead you to those objectives.
• A comprehensive analysis of your agency’s strengths, weaknesses, opportunities and threats.

Of primary importance here is that the business plan is constantly consulted, updated and changed to reflect changes in the business environment.

Taking Stock of Skills

What about the personal skills that are necessary in order to be successful as a rep? Profiles of successful reps indicate that they can point to a history of performing among the top 10 percent of their sales peers. Typically, to reach that level of achievement, reps have shown a continued positive outlook, are resilient in the face of adversity, exhibit a genuine desire to assist others and have shown themselves to be proficient in the art of negotiating.

Why are those skills important? Consider for a moment a conversation with one rep who explained that during the course of his first year in business more than 25 years ago, his annual commission income amounted to $36. With that as a track record, try walking into the office on the last day of the year with a smile on your face unless you’re positive, resilient, and want to continue to help others. Happily, this same rep can look back on those days and smile and as he recounts the steady growth his firm has achieved over the years.

Positive Thinking

Even the most cursory visit to the library or bookstore will present the visitor with shelves of offerings on the benefits of positive thinking. The main point, however, is that if the rep startup is firmly grounded in reality with a concrete business plan and realistic budgeting, the ups and downs of the typical business cycle will be anticipated. Planning for the future will reflect the hard knocks that accompany any business venture.

As an addendum to the subject of personal skills, don’t forget about the needed ability to negotiate. Remember, negotiating skills differ from sales skills and it’s skill in the negotiating arena that can spell success for the rep, not only in his relations with his customers, but also in his dealings with principals.

The successful rep likes to point to his ability to protect his principals’ margins. To do so, however, he must be skilled as he sits across the desk from his customers. At the same time, success or failure in the rep business can often be traced back to the rep’s negotiating ability when he talks contract with his principals.

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