What is the pay-off? What should it cost?

Sorting Out the Lines

Before you start to think about backselling it is vital that you look over your commission performance by line. Who matters? Five percent is a good cut-off line. If a line doesn’t produce five percent of your income, it does not merit serious attention; unless you expect it to grow to five percent within 12-24 months.

This sounds arbitrary and it is! Too many reps spend too much time messing around with minor lines that can’t be important in 100 years. These lines should be resigned and off the line card.

If all of the non-performing lines were gone the line card could not have more than 20 lines. Chances are there would be 8-15 lines. The smaller the number between 8 and 15 the better. Most reps end up with 10‑12 lines.

This is a very workable number. By attacking the list of lines from the top down (descending order of commission) a plan can be developed for a backselling program that can enhance the rep firm’s position with the lines that count and help protect the rep firm from adversity.

After the list is put together, it is time to begin the evaluation process. The key thing is judging the nature of the relationship between principal and rep.

This evaluation calls for brutal honesty. What is the relationship between the key people at the number-one line and the rep firm’s personnel? And the relationship with the firm in general? Do the key players at the principal have a clear picture of the rep firm’s approach and how the agency is doing penetrating all of the key accounts in the territory?

It is not enough to say, “They love us!” Do they really know us? How deep is their knowledge of our operations and the way we take their line to market?

Weaknesses in the Relationship?

Where are the holes? Who doesn’t totally respect the rep firm? Who has made comments that are negative? Who has interest in going direct? Who has another rep firm that he favors over the incumbent? Why? What else is a negative in the relationship?

Take Your Time

This exercise is too important to gloss over or rush through. For the top lines who may contribute 10-20 percent of commission income each, every minute spent is valuable. This is about everything related to working with this line and making it an even bigger success than the previous year.

Don’t worry about getting too dependent on one line. If the biggest grows because the rep firm is doing a great job, the odds are the other lines will grow also.

Action Plan?

Looking over your observations and comments about the line, where do you stand? Are there any clear and present risks, dangers, problems?

If so, what can you do to mitigate these issues?

If not, what is a good plan for the coming year to put the rep firm in a stronger position with this key line?

What Is the Pay-Off?

The pay-off can be huge. In one case, as a direct result of the development and execution of a comprehensive backselling plan, a rep firm more than tripled its commission income over a five-year period. In many other cases the development of a good backselling program has helped rep firms cement relationships with key lines and get superior support from those principals that has helped them grow and prosper.

Everyone Plays!

One of the key parts of a backselling program is that everyone at the agency knows the plan and understands their part in the plan. From the receptionist to the janitor and up and down the sales team everyone on the rep firm team has to be a part of backselling. The manufacturers need to feel the rep firm’s backselling program at all times.

Specific Activities and a General Attitude of Backselling

Lots of little things go into the backselling plan. There need to be publications, e-mails, on-line activities and a constant stream of focused activity that lets the manufacturer know that the rep firm is doing a good job. Principals must know the rep firm is constantly increasing share of market and market penetration. They need to believe that the rep firm is the very best firm in the market to represent their firm.

The rep firm cannot let an opportunity to back-sell slip by. When there is news —get it out fast and well-expressed to the principal.

When the rep firm and customers create success for the line — get it out fast and let the principal know.

When the rep firm receives recognition from customers, key people in the market, even other principals, get it out fast.

The constant flow of positive, professional news keeps the principal in a position of building respect and awareness of the quality of the rep firm.

What Should It Cost?

If a rep firm has $1,000,000 in commission, is it worth five percent, $50,000 to fund all of the activities of backselling?

This is definitely income insurance. What should be covered by this “allowance”?

The most important element of the backselling program is face-to-face communications with the key principals. The rep firm principals and other key people need to travel to the principal’s place of business to discuss sales and marketing activity and to cement the relationship.

The rep firm has to have a line card, profile and other related tools. The rep firm has to participate in key trade shows with or without the principal.

The rep firm has to keep the principal informed and aware at all times so the principal says, “A week never goes by that I don’t hear from those guys — they are terrific communicators.”

Bottom Line

The rep firm wins when the backselling efforts are organized and very professional. The rep firm loses — sometimes very big — when thought has not been put into the relationships and aggressive pro-active tactics have not been launched.

Good luck and good backselling!

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