Not a day goes by that MANA staff members are not engaged in conversations with reps and principals who are faced with unique and not-so-unique questions and problems.

One of the true benefits of MANA membership remains the fact that when a member — or prospective member — has a problem, they can visit the association website (MANAonline.org) or contact association headquarters and immediately be put in touch with someone (i.e., a live human being) who more than likely can point them in the right direction.

In the course of these daily interactions, several common themes are sounded. As an example of what a MANA member might experience when contact is initiated with MANA, here’s how these curious members might be directed.

What should I know; what should I be prepared to do when starting a rep agency?

Jerry Leth’s immediate response to this is “You came to the right place with that question!” Expanding on that response, Leth, MANA’s vice president and general manager, continues that MANA offers a comprehensive start-up program on its website beginning with a 45-minute video. Once that’s completed a special report on the subject may be downloaded.

According to Leth, “The success rate for rep-firm startups after the first six months is only about 50 percent. That’s why it’s so important for new reps to learn all they can and to be fully informed about what it takes to start a rep firm. Once the new rep is armed with all that information, MANA can then connect the startup with an experienced mentor to guide them through the beginning phases of their business.”

The mentoring process that Leth describes was featured in the March 2012 issue of Agency Sales magazine. In that article, Joe Miller, MANA’s former president and CEO, explained, “MANA generally gets 25-30 new rep members each month. About one-third of them are new businesses. You know the drill — super-successful, medium- to large-company salespersons and sales managers who have had all the corporate ‘fun’ they can stand and who want to provide a better living for themselves and their families. Many of these men and women are in the top 10 percent of their fields and have developed excellent selling skills. Most, however, are lacking in the experience and skills needed to start a rep business and navigate through the first couple of challenging years! Unfortunately, statistics show that many of those agencies fail to make it past the one-year mark.”

Miller explains that a goal of the program — which is ongoing — is to “smooth the way and advise new reps how to avoid some common errors.”

The aforementioned is just the tip of an informational iceberg, however. A visit to the MANA website, a phone call or e-mail to MANA headquarters, or a regular reading of the association’s monthly magazine, Agency Sales, will provide a wealth of information on this and other rep-centric issues.

Do I have to accept the rep‑principal contract that is presented to me by the principal?

According to Doug Bower, MANA’s director of strategic alliances, “If you do something as simple as Google the subject of ‘rep contracts,’ you’ll probably come up with 5-7 samples. The problem is that not one of those samples will provide the rep, or the principal for that matter, with sufficient protection.”

He goes on to advise MANA members to access the sample contracts and contract guidelines that MANA has put together and are available on the association website. “These were composed with the assistance of association members who volunteered their efforts, together with several rep-savvy attorneys that are affiliated with MANA. The reason these sample contracts are beneficial to members is that we include a rationale and a background as to why various subject areas should be addressed.” He adds that a teleforum entitled “Negotiating Contracts” is also available on the MANA website.

Bower also makes the point — and it’s something that experienced reps will agree with — that it’s critical for reps to negotiate and work with a written contract vs. a verbal agreement or the traditional handshake. “The days of the handshake agreement are long gone. Neither the rep, nor the principal is well served — legally or practically — by relying on the good will and word of the other. Remember the adage: ‘The verbal agreement isn’t worth the paper it’s written on.’”

What’s the standard commission for the industry in which I work?

In answer to this common question, Leth points to a comprehensive survey the association conducted a few years ago. The survey covers more than 140 different product classifications, including OEM, distributor resellers, etc., and provides some fairly basic guidelines.

According to Leth, “Admittedly this survey was conducted in the past, but our experience has shown that the results are still valid because history shows that commission rates simply don’t vary that much over time.”

To locate the survey, members should go to the member area of the MANA website, locate the bullet point for publications and special reports. The survey may be downloaded at no charge to members.

Where and how can I locate experienced legal assistance?

Once again, in answer to this question the MANA website is the place to start. “It’s there that members can find the full list of rep-savvy attorneys, each of whom boasts extensive experience in working with rep law,” explains MANA President and CEO, Charley Cohon. “Each of the attorneys has been recommended by a MANA member and they are located throughout the country. Ideally, a rep should choose someone geographically located near them. If they can’t find someone locally, chances are one of the attorneys is associated with an experienced lawyer near the rep.”

Cohon is quick to laud reps who recognize the importance of seeking the counsel of an experienced attorney. “MANA doesn’t dispense legal advice. That’s why this list has been created and maintained. There are any number of areas where the rep should seek the guidance of an attorney, whether it involves commission protection laws (all of which are listed on the MANA website), dealing with offshore manufacturers, or the wording of proposed contracts.”

He adds, “More than just maintaining a list of rep-savvy attorneys, MANA convenes the attorneys on an annual basis for a legal forum. It’s at this session where we’re able to share best practices, interesting legal cases and generally cross-fertilize each other with timely strategies and ideas.”

MANA members also should be aware that as a membership bonus, each MANA member is entitled to a complimentary hour from an attorney on the list if they encounter something that must be discussed. In addition, there is a monthly legal article in Agency Sales, and the association provides various publications covering everything from reps and the law, to U.S. and European rep law and MANA’s guidelines for international agreements.

There’s constant turnover among the sales managers for my principals. Are there any tried-and-true methods for training these people to work with reps?

Leth maintains that this is one of the most common questions posed by MANA members. “It’s hardly unusual for a rep to be working with a principal not accustomed to the ways of the rep world. One of the best ways to bring that principal up to speed is to acquaint them with the Manufacturer Seminars that MANA has been conducting for years. The most recent one was held last month in Chicago, and more will be conducted in the future.”

While detailed information concerning the seminars and their presenters (industry veterans Hank Bergson and Kris Hefley) appeared in the October issue of Agency Sales, Leth explains that a key to the seminars’ effectiveness rests in the rep’s ability to get their principals to attend. Several reps have been very successful with a unique approach to accomplishing this goal, he says.

“Several members simply approach their principals, alert them to the existence of the seminar and urge them to attend. Others are a bit more proactive — especially with principals who have developed great relations with their reps and practice good customer service. Those reps offer to pay for their principals’ registration for the seminar. All the principal has to do is cover travel and lodging expenses for the seminar.

“What has happened many times,” he continues, “is that when the manufacturer completes the seminar, their feedback is so positive and the information is so valuable, they never forward an invoice to the rep.”

Leth emphasizes that the MANA Seminar isn’t the only avenue members can pursue in order to educate their principals. “Reps should never forget about scheduling various events for their principals that will strengthen the relationship. On top of that, however, MANA has:

• A number of teleforums covering how reps and their regional sales managers can work together more effectively and how to market the rep firm to principals.
• A variety of articles in Agency Sales that cover how reps and manufacturers can work better together.
• Special reports devoted to analyzing the rep-principal relationship and how to work successfully with reps.
• Webinars describing how to locate, select and keep the best principals and how to market the rep firm.
• A free, downloadable electronic book for principals entitled Understanding the Sales Rep/Manufacturer Relationship.

Is there anything important I should know about representing foreign principals?

The quick answer to that question is “Yes,” but the complete answer may be found in the member area of the MANA website, in several of the teleforum recordings.

Cohon explains that the answer to this question is especially important for those reps who are planning on — or actually working with — foreign manufacturers that do not have a U.S.-based office, staffed with U.S.-based personnel. “When that U.S. presence exists, the rep has much better recourse if something goes amiss in the relationship.” He points to two teleforums, “Working with Foreign Principals, Parts I and II,” as being helpful in this area. In addition, there are several articles in Agency Sales, including legal articles, that are pertinent to this subject.

Where can I find software that is specially designed for the needs of independent manufacturers’ representatives?

This is a subject that Agency Sales has addressed several times in the past. Directories of software providers have appeared in the publication complete with descriptions of products and services offered. In addition, there have been a number of articles (which can be found online on the MANA website) covering this subject.

According to Leth, “Members also can find software vendors by visiting the MANA website and searching for the list of providers. This list includes providers that MANA has spoken with and who provide software specifically designed for the reps’ needs.”

The subject areas covered in this article are by no means all that the association has to offer to its membership. Perhaps the best way to be exposed to what MANA has to offer is to visit the association web site and learn about:

• RepFinder.
• LineFinder.
• Special Reports.
• Events.
• Pertinent Legislation.
• Educational and Professional Development Opportunities.
• The latest news of MANA’s affiliated rep associations — AIM/R, IUCAB, NAGMR and PTRA.
• Information concerning MANA’s sister rep associations.
• And, much more….