If one manufacturer didn’t know beforehand that his agents thirsted after product training vs. sales training, he certainly knows it now.

That’s what the manufacturer reported after some input from several of his independent agents. According to the manufacturer, “I had several of my reps approach me with a request for training. But, at the same time, they were adamant that they didn’t want sales training. They were after product training. Their message to me loud and clear was that since they had already carved out successful careers for themselves as independent representatives, they knew what they had to know about how to successfully sell. What they didn’t know was all they should about my current product line.

“In addition to asking for a steady stream of product training, they also wanted the training to be non-intrusive and not to take too much of their time away from the selling process.

“Here’s what both sides agreed to: Whenever possible we were going to bring the training to them. That way they wouldn’t have to leave their territories. We developed a program to train them, but only when we had something truly new to tell them about. By delivering on our promises, we learned that all of our reps are interested in what we have to offer and they’re anxious to complete the training we are able to provide.

“As a side benefit, when we bring the training to them in the field, we are able to combine our efforts with regular visits that we’d be making anyway.”

More on Training

Staying with the subject of training, few would argue that paying commissions to reps accurately, on time, all the time, remains a major motivating force for principals. Having agreed upon that point, however, the manufacturer should never underestimate the motivating value of offering training for their agents. At least that’s what one manufacturer believes.

The manufacturer we speak about surveyed its outsourced sales force last year and came back with data supporting the view that “Our reps believe that ongoing training and education strengthen relationships for us. We found that our reps believe that the manufacturer who provides the most training and information to work with generally becomes the most valuable principal in the eyes of the rep. What happens is that there is more understanding, knowledge and experience available to the customer. When that occurs, we all benefit.”

Accommodating Field Visits

A manufacturer couldn’t have been happier with one of his reps that had shown himself to be completely on board when it came to scheduling and conducting visits in the field. According to the manufacturer, “The rep has done a great job when it comes to establishing workable ground rules for our visits to the territory. In addition, whenever we’ve identified a need that we can only meet by visiting them in their territory, they have proven themselves to be more than accommodating.

“Conversely, when we’ve made a request that he make an annual visit to the factory to meet with us, he is just as accommodating. Even though we realize it’s difficult for him to spend time out of his territory, we’ve found that these visits are productive because they allow us all the time we need for new product and sales training programs.

“We’ve found that just as important as these factory visits are the face-to-face networking opportunities that the visits present. When the rep meets our personnel or renews acquaintance with someone they have only spoken to over the phone, it’s obvious that those contacts result in benefits for months to come.”

Considering the Rep’s Value Add

Whenever Agency Sales interviews the owner of a rep firm, invariably this question comes up: “What do you wish manufacturers were more appreciative of regarding what the rep does for them?” The reason this comes to mind is that recently a manufacturer let us know that “One of my reps did absolutely nothing to get an order, but at the same time he expects me to pay him the commission. I don’t understand his thinking.”

Hearing about this communication, another manufacturer who admitted to having worked with an outsourced sales force for more than 40 years jumped at the opportunity to respond. According to the second manufacturer, “You’ve got to come to terms with the fact that there are some tradeoffs in the relationship between principal and rep. Experience has shown me time and again that reps perform many tasks for my company — all without receiving a single dollar in compensation. Let me give you an example: I can’t count the times that a rep has done a tremendous job selling a project — including gaining a price premium — only to lose the order because their manufacturer could not meet a customer’s needed shipping date. Or, how about all the marketing intel I’ve asked reps to gather and communicate to me — once again without receiving compensation?

“And, let’s not forget reps’ missionary efforts or time spent trying to iron out problems between the manufacturer and the customer. This all comes down to the reps’ value add. So sure, the occasion may present itself when it appears the rep hasn’t done a great deal to get an order, but I can’t forget all the other times when he’s gone far beyond what was expected of him and hasn’t been compensated.

“I guess what this all comes down to is possessing a real understanding of the relationship and being fully aware of expectations. From day one, if both sides understand the terms of the relationship, concerns over being compensated or not compensated for various activities won’t be a matter for debate.”

Maximizing Network Opportunities

In the course of a recent MANAchat, several reps touted the benefits they gained from contacts they made with other reps via participating or membership in informal networking groups. When a manufacturer heard about this, he offered his perspective. “I’m new to my present company and one of the first things I did was to take a close look at changing from a primarily direct sales force to independent manufacturers’ representatives. When I made that suggestion, I immediately received some pushback from other of my company executives. As a result, when I attended one of our industry’s annual meetings, I was anxious to learn the thoughts of some other non-competitive company executives. I was looking for some information and ammunition to bring back home in order to bolster my opinion. Thankfully, I got just what I was looking for, and ultimately we made the change to reps and couldn’t be happier with the result.”

The manufacturer went on to tout the benefits of meeting with others who are in similar positions to him and their willingness to share information — in other words, he didn’t have to reinvent the wheel.

Valuing Cold Calls

When two manufacturers were complaining about the reluctance of many of their reps to regularly make cold calls, a third manufacturer offered her opinion. “I’m well aware of the reluctance — if not the lack of success — my agents have had in making cold calls. At the same time, however, I don’t completely ignore the benefits of cold calling.

“Here’s how I approach the subject. I’ve made it a habit of regularly citing what can happen when they call on someone with a prospect company who doesn’t make the final decision on purchases. Rather, I advise them to contact those individuals who can advise them on the information they need in order to get appointments with the decision makers.

“When all things are considered, the bottom line for me and my outsourced sales force is that they shouldn’t just be making random cold calls — but they should search to contact those who have the information they need in order to make the sale in the end.”

Evaluating the Relationship

In the course of the interview process when an independent rep asked a prospective principal what the manufacturer viewed as his most important responsibility in the relationship, the manufacturer was quick to admit that it got him thinking about his relationships with his other agents.

“Thankfully, the more I thought about it, the better I felt about the working relationships I already had with my rep network. While there are any number of responsibilities the manufacturer has to fulfill in working with reps, I boiled down my major concerns to:

• Importance of a written contract — “I adhere to the adage that a verbal contract isn’t worth the paper it’s written on. I’m a firm believer in relying on a written agreement that memorializes what each side of the agreement has agreed upon.”
• Integrity — “What this means to us and our reps is that we must routinely make commitments to perform, but at the same time we must live up to those commitments. If our word is no good, the relationship is no good.”
• Responsiveness — “When a customer and our reps have questions or problems, we drop what we’re doing elsewhere and make sure they receive a solution to their problem or an answer to their question. Any other approach is unacceptable.”
• Quality products — “Nothing will sour the relationship between principal and rep more than products that fail in the field. And, not only does it sour the relationship between us, perhaps more important, it absolutely destroys our relationship with customers.”
• Fair and accurate commission — “We not only pay fairly and accurately (all determined during our negotiating with the agency) but we also pay on time, all the time.”

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