Do It in All the Right Places in the Right Ways

Hiring reps should be easy. You have a good line. You are willing to pay decent commissions. You already have several excellent rep firms selling well for your line. You should be pretty well assured of success.

But, there can be problems. Two or three of the best rep firms in the territory are already selling your competitor’s lines. In the open territory you do not have much existing business. The open territory does not have as many good prospective customers as other areas of the country. The potential, at least short-run, is not as great.

The Rep’s Pitch

When you meet with the potential rep firms, what are you looking for? The first thing should be marketing presentation. If a rep firm doesn’t have the requisite tools and materials to sell you on their firm, why would you hire them?

What tools? The firm profile is the first tool you should be looking for. How does the rep firm present itself? If what they call a “profile” is just a laser-printed one-sheet touting the rep firm, you can begin to doubt the value of that firm.

If, on the other hand, the rep firm, presents a well-constructed “brochure” professionally prepared and done by a competent graphic designer, you can be impressed and add points for that agency.

What else should the rep be using to sell itself? A well-marketed rep firm should have a “line card.” The line card is a major tool. What lines does the rep firm represent? How does it present its lines? What is their approach to their package of lines? By approach we mean — how do they show the synergy between and among their lines? The selling of the line card is another important part of the rep firm’s presentation. How do they understand and position their approach to “multiple-line selling”?

What else does the rep firm talk about when they present themselves — do they mention marketing programs, direct mail, promotions, other activities including trade shows and exhibits as important parts of their programs to sell customers and develop their territory?

You are looking for a marketing organization that has very strong sales skills.

The Sales Team and Sales Management

There is only one reason to hire a rep firm — sales!

It is unprofessional for an agency to give you details about their sales with specific current lines, but what you want to know first is: How do they manage their sales force?

Sales force management is the number-one deliverable service that you need. Everything to build your sales in their territory is dependent upon how they manage the sales force. What sort of planning do they have for line penetration of the territory? How do they evaluate the potential of the line and the customers? What can they tell you about the prospects for your line in their territory? Even if you don’t hire them, this discussion can help you a lot in planning for this territory.

These questions should be asked verbatim. These questions are the guts of your interview process. You need to evaluate the rep firm’s approach to building your line in their territory. The fact that you are not bringing a substantial existing commission income to them means that your line may not become important to them for a while. How long do they think it will take them to build the line? Are they ready and willing to do the development work? Do you need to provide extra incentives for growth? Will it be worth it?

Talk About the Five Percent Rule

It is prudent to talk very frankly about commission income and commission opportunities. It is important that the manufacturer demonstrate a knowledge and appreciation for the facts of the rep business.

Knowing how commissions work and how your line can and will fit into the rep firm’s portfolio is key to a successful interview and a successful relationship leading to mutual profit.

You may not be able to get a detailed statement of line revenue, but you should be able to pull out of the rep firm an approximation of how much commission they earn.

Potential Is the Name of the Game

Whenever possible, your best option is to choose a rep firm that can grow your line to be at least five percent of that rep firm’s commission income within two years of taking on your line.

Manufacturers often report that lines that do not represent at least five percent of a rep firm’s income do not get the kind of attention that is needed to grow a manufacturer’s sales in that territory.

The Bottom Line

Skilled, informed, well-prepared interviewing is key to building your rep organization. This article provides the basics of a checklist to use when preparing to interview rep firms in an open territory. It also provides a good checklist for reviewing existing reps. Doing a performance review of each of your rep organizations is very valuable.

For reps this checklist should be a part of your tools to prepare for dealing with your principals and a good backselling tool for presenting your firm and your performance to your significant principals. Being prepared and organized is key to success in today’s rep business.

Good luck and good selling.

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