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While it can remain a challenge to find reps to represent their lines, manufacturers maintain there are steps to take when it comes to finding the right fit. That was a major takeaway from a MANAchat when manufacturers got together to discuss their challenges and successes when it comes to signing on with rep firms.

Setting the stage for the discussion, one manufacturer explained, “Typically, like just about everyone else, we generally go through the search and interview process, followed by a trial period in an effort to establish what the expectations and relationship would look like. We’ve had some success but we’re always looking to expand our rep network and it remains a work in progress.”

A second manufacturer offered, “We’ve had some mixed results over the years. Luckily, we’ve had some pretty good luck when it comes to locating and signing reps, but in general, given these uncertain economic times, it’s not an easy task to find someone who’s willing to work on a commission-only basis. Too many people today are looking for guaranteed six-figure salaries and that’s not going to be the case when it comes to a rep taking on our line. On top of that, once you are lucky enough to find someone, you can’t always keep them. I’d have to say that we usually roll the dice and then just hope for the best.”

In lieu of “rolling the dice,” a couple of the manufacturers participating in the chat volunteered that they’ve had considerable luck working with MANA when it comes to a rep search. Explaining that he’s been a manufacturer member of MANA for 12 years, one chat participant explained, “In addition to locating reps on LinkedIn, I’ve placed ads in Agency Sales magazine; read reps’ ads that have appeared there; and also, worked with the association via their RepFinder® to locate prospective reps. I’d add that recently I worked closely with Jerry Leth, the association’s vice president and general manager, and was able to locate two reps that I’m in the midst of training right now. What we did was to search for reps in the territories where I had vacancies and then researched their current lines in an effort to make sure there would be a measure of synergy with my line.”

It also was noted that more than 80 percent of the reps who are members of MANA have websites and according to one manufacturer, “We’ve found that researching their websites has provided a great deal of insight into their operations and have guided us in making our rep choices.”

No matter which approach to finding reps is followed, whether it’s simply rolling the dice or conducting a sophisticated search, one bit of advice was offered to the group when one participant emphasized the need for “adopting an internal sense of purpose when conducting a search. If I were a manufacturer looking for representation, I’d not only be looking for a rep to sell my products, I’d also be looking for a rep who was capable of establishing the types of relationships needed to be successful. The real key to properly repping a manufacturer in the territory is having those relationships that cause the buyer to buy from someone they know and trust.”

Reps know who the good reps are. That was a bit of guidance offered by another manufacturer who related his experience. “Before I retired, I was working exclusively with reps. The company I retired from brought me back on board when they were having problems with their rep network. Their goal in bringing me back was to have me find new reps for them and work closely with them. One thing I learned was the importance of getting recommendations from our better reps concerning other reps we should work with. I can’t emphasize enough that if you already have reps, talk to them — they know who the other good reps are. Reps seem to network a great deal with each other either through their participation on rep councils or with their rep associations. As a result, they have some valid opinions about who the good reps are. On the other hand, if you’re new to working with reps talk to your customers and ask them about the reps who call on them. I’ve followed these approaches in rebuilding our rep network and they’ve worked beautifully for us.”

It would appear that no discussion of how and where to find good reps is complete without mentioning some areas of concern that manufacturers ought to be aware of. This MANAchat was no exception. Among those areas discussed by the group were:

• Red flags — When one manufacturer inquired as to whether any red flags would cause a manufacturer to stay away from a prospective rep, it was offered that communication was key. “You want your reps to communicate on matters of concern in the territory. That doesn’t mean you want regular call reports. But what you do want is for the rep to be proactive and to always be willing to let you know what matters of importance are occurring in the territory.”
• Succession plans — One manufacturer explained that when he was charged with working with his company’s rep network “We already had a long-standing group of reps that we’ve been working with for years. The challenge, however, is to add new, younger, hungrier reps to the mix. A part of that concern is addressing the subject of what happens when one of our older agency owners decides to leave the business. That’s why it’s so important for us to be working with rep agencies who have succession plans in place and make sure that they communicate the existence of such plans to us so we know what the future holds.”
• Market development fees — “We’ve found that when we have no existing business in a territory and we take on a rep to develop that business, the subject of having a market development fee or some sort of retainer arrangement always seems to come up. Rather than shy away from these discussions, we listen to what the rep has to say and generally, we’ll come up with an agreement that shows him that we’re willing to have some ‘skin in the game’ while he takes his time to professionally develop the business for us.”
• Approaching prospective reps — Several manufacturers bemoaned the fact that when they’ve communicated with a prospective rep via email as to their interest in representing them, all too often they don’t get a response. It was emphasized that when you approach a rep, “You have to communicate the fact that you have a strong commitment that the relationship is going to work for the both of you. Manufacturers must be aware of the difference between working with a direct employee vs. a rep. If you hire someone to work for you, then you’re the boss and you can direct them on a daily basis. Reps, on the other hand, are an outsourced resource and you don’t treat them as employees. What you’re looking for is the creation of a business relationship.”

One manufacturer noted that when he’s had some lack of success in getting a response to an email solicitation from a rep, he’ll forward that email to Jerry Leth at MANA headquarters, who has worked to refine the message to encourage the rep’s response.

More “Red Flags”

As a follow-up to the mention of “red flags” that appeared in the previous item in this column, it goes without saying that the manufacturer has to be prepared for all questions in the run-up to a prospective rep interview. But, not only should the manufacturer be prepared, so too should the rep. And, the level of the rep’s preparation should be considered as the manufacturer ultimately makes their decision.

As an example, an industry consultant emphasized that there are some reps who are basically unprepared to answer the questions that have to be answered during the interview process. And that inability should certainly serve as a “red flag.”

“One thing you as a manufacturer must remember is that the rep must possess a belief that there’s nothing more important than selling himself to you. He can’t expect to be hired just because he makes a good appearance and handles himself well. You’re looking for much more than a pretty face. The person you hire is going to be your eyes and ears in the field. He is ultimately you in the eyes of
the customer. Hire carefully.”

Red Flags — Continued

When the subject in a conversation with a manufacturer turned to what he looked for in a potential rep, the manufacturer was quick to point to preparedness and knowing when to listen as important skills.

According to the manufacturer, “Whenever I meet a rep for a personal interview, he had better be prepared with industry and territory knowledge and a working knowledge about my company. I don’t know how many times I’ve met with reps who show me right off the bat that they haven’t prepared for the meeting. If we have to spend the entire meeting going over fundamental information, there’s very little chance I’m going to sign that rep.” And next, even for the rep who comes prepared, there comes a time in the meeting that he’s got to hold his tongue if he wants to make an impression on this manufacturer. “Talking too much and not listening enough are cardinal sins,” he explained. “The rep will go on and on about himself and his agency when all the major points have already been made. Instead of talking at great length he should treat me as a potential customer, read my body language, try to get a sense of what my needs are, then respond accordingly. It’s the rep who shows me these talents who gives me a much greater sense of optimism in establishing a relationship.”

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