Somebody has to be the boss. Democracy is the enemy of the sales business.

Someone has to be in charge.

That simple-sounding statement can lead to all sorts of problems in the rep business.

Who should manage the sales force? In a rep environment, picking someone to be in charge of the sales process and to work with the salespeople to get the results that principals are expecting is critical. But how does a rep firm with perhaps four partners and five outside salespeople determine how to run the sales programs and deliver results for principals?

How can the firm put one person above the others? How can that one person deliver the results that the rep firm must achieve in order to satisfy principals of each line? The commitment to a sales management role for one of the team is the first step, but it is far from making real sales management effective.

Why does the rep agency need a sales manager? It comes down to the principals and the revenue of the rep agency. Without direct, professional supervision the sales force will not achieve the results in that position for it to be significantly more successful. No one can work in a vacuum. With sales management each salesperson has a “boss” and a direct supervisor. Each salesperson knows that they have in-the-field support and a “consultant” to help achieve the goals and exceed them

The first step for a sales manager is to assess the sales force. The principals are paying for sales performance. The sales manager is the driving force behind sales performance.

Educating the sales manager is important. What does the sales manager need to know about sales force management? In most cases, the sales manager will not have occupied this position in either a principal firm or in another rep firm.

How does the sales manager educate him or herself about the tasks and skills needed in the job? In some cases, working with an experienced sales manager from the industry that the rep firm works in is the best first step.

The sales manager does not need to become a clone of the sales force management trainer. The goal is to acquire a set of operating principles and processes to guide the sales manager to become a real sales management professional. “Just do it!” is often the best course for a sales manager in a rep firm. Jumping in and getting to work with the sales force can be the best approach.

Figuring out the competence and effectiveness of the individual salespeople is a first step. For the benefit of the principals, the sales manager needs to start with defined goals for each salesperson with each significant line.

Backselling the Sales Manager Role

The presence of the sales manager is a powerful tool for backselling to the principals. The principals want to know that the rep firm is driving sales of their products and working to increase market share. By publishing the sales goals for the line the principal sees that the rep firm has an organized, disciplined and well-managed sales process.

The principal is not entitled to reporting from the rep — the issue of control is very important. The IRS will deem the reps employees if the principal exerts control over the salespeople even if it is apparently at arms’ length. But, with the sales manager doing the job and letting principals know what is happening with each salesperson in each territory, the rep firm stays independent but stresses the interdependence of the rep firm and the principal.

Conduit for Development and Training

The sales manager almost automatically becomes the key link for the principal to communicate with the sales team. Instead of trying to relate to each of the salespeople, the principal can use a strong relationship with the sales manager to influence, train and motivate the salespeople.

Adding the sales manager can provide a major positive boost to rep performance and principal satisfaction. Leadership matters!

Good luck and good selling.

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