One piece of baggage that many reps will never get rid of is the feeling that if they’re too successful for their principals, they are doomed to being terminated at some point. The thinking goes this way, according to one rep: “I built the relationships and grew the business that didn’t exist before. Unfortunately, once the manufacturer considered the size of the monthly checks he was sending me, he felt he could save money and serve my territory with a direct salesperson.”
Thankfully, not all manufacturers feel this way. That point was driven home when several manufacturers, who work exclusively with reps, conducted a roundtable discussion at an industry event.
Right out of the box, one manufacturer offered that in his opinion, “It’s the fair rep who earns a fair commission; the good rep earns a good commission. And finally, it’s the great rep that earns and deserves a great commission.”
Another manufacturer continued that train of thought when he said: “It’s the rep who has established relations with the customer who deserves everything I can give him. The way I see it, it’s our job to constantly assure that rep that we truly value his effort and take pains to communicate to him that all I care about is his best work. After all, the more he makes, doesn’t that mean I make more?”
“It’s the fair rep who earns a fair commission; the good rep earns a good commission. And finally, it’s the great rep that earns and deserves a great commission.”
Starting the Search For a Rep
At the same event, a manufacturer who was there to learn how to start up his rep network was overheard asking another manufacturer how to determine if a prospective rep firm is well-managed. The other manufacturer, who was well-versed in dealing with reps answered that among the attributes he should be looking for are these:
• When considering the lines the agency reps, how many are top lines?
• How long has the agency been in place in its territory?
• Form an opinion as to the quality of the agency owner and his salespeople.
• And finally, who makes up its customer base, do they rep lines complementary to your own and what do other reps and manufacturers think of them?
The Search For Synergy
As a follow-up to the previous point that stressed how important it was to find agencies that rep complementary lines, another manufacturer noted: “It doesn’t take long for us to determine what customers a prospective rep is able to get in front of. All we have to do is look at their line card. Conversely, if we look at his line card and determine there’s nothing complementary, we won’t even consider him. It’s really not all that complicated. With all the difficulty reps, and direct salespeople for that matter, have getting across the desk from a customer, we figure that a rep needs every advantage he can get. And, having complementary lines to talk about is a chief advantage. That not only makes the rep’s job easier, it makes the customer’s job easier. If the rep is carrying the right lines, that means the customer has to see fewer salespeople.”
A final bit of advice on this subject is that manufacturers should also want to work with reps in a territory where you have a good number of customers and that he knows how to sell customers who are compatible with the product that you manufacture.
Don’t Forget the Rep Council
During Agency Sales’ continued examination of the subject of change and how change impacts reps and their manufacturers, the rep council reared its head. Rep councils will be examined in an issue of this publication later in the year, but what got our attention right now was an exchange between two manufacturers, one of whom was looking for tips on how to restart his council after a lapse of several years. The advice from the other manufacturer was: “Start from the beginning. Don’t build on what you did previously. Take a look at what your problems were, and make every effort not to repeat them. Explain to your reps that you’re starting fresh and that you value their input. Then hit the ground running.”
A third manufacturer chimed in: “We’ve had tremendous success with our rep councils over the years. The reasons for their success are many, but I’d point to two in particular.
“First, set realistic goals for the individuals members of the council to perform. Second, at the same time, set realistic deadlines within which those council members must accomplish those goals. The deadline thought is one that most people don’t consider. They know all about the goal, but they don’t do anything about the follow-up. That’s why deadlines are so important. Unless you hold individuals accountable, you really can’t expect them to do anything.”
The Good Side of Rep Reviews
If rep councils serve as an example of how manufacturers and their reps can become closer working partners, how about the subject of manufacturers performing reviews of their reps. A manufacturer who has conducted such reviews for several years is a proponent of the practice and maintains it’s good for manufacturer and rep.
“In addition to just looking at sales figures, which everyone does,” he says, “we decided to throw some other things into the mix. In looking at the larger picture, we were very pleased to learn about a number of things our reps did for us that we never knew about. For instance, several of our reps conducted mini trade shows that we were never aware of. Some others did in-plant seminars. More to the point, there’s a great deal that goes into the rep’s effort to gain sales, and all those additional efforts should be included in any type of annual review of their performance.
“To say that our reps were happy with what we learned about them is an understatement. While they may have been modest enough not to let us know all they did, when we found out about their efforts, we were quick to praise them.”
Networking vs. Socializing
A conversation with a manufacturer who had recently contracted with three new reps — all of whom were in their early 30s — pointed to some of the differences in work practices of different generational groups.
According to the manufacturer, he was feeling a certain level of frustration with the practices of these reps when it came to networking. In the manufacturer’s view, based on decades of experience, networking with customers approaches the level of socializing. But with these reps, their view of networking is one that takes place electronically. “Over the course of a number of trade shows and industry events that we’ve attended together, I’ve tried to impress on them how important it is to establish personal relationships that can only be achieved in person. I’ve made a little progress, but there’s more to do. I’ll be honest, however, that at the same time I’m working on them, they’re working on me to be more electronically savvy and more open to their approach.”
Coincidently just about the same time this conversation took place, a short article came across our desk that addresses the manufacturer-rep concern. Some of its more salient points are worth considering.
According to author Jeff Beals (www.JeffBeals.com), reps and others should make every effort to turn “socializing” into “networking.”
Most professionals know they must network in order to achieve long-term business success. I remember as far back as high school being told by my guidance counselor that I needed to “meet a lot of people and build a network.” That was great advice back then and even better advice today.
It’s critically important to participate in the public arena and interact with the people who could become your clients, provide you with valuable information or help you further your causes and beliefs.
While they understand the importance of networking, many professionals do a lousy job of it. It’s easy to show up at an event, grab a drink, eat some free hors d’oeuvres, say “hi” to a couple people, then go home and pat yourself on the back for being involved in the community.
Unfortunately, that’s not networking; it’s merely socializing.
There’s nothing wrong with socializing. In fact, it’s generally a good thing, but it’s not efficient. In order to convert socializing into networking, you need to have a three-tiered goal planted in your mind before you even enter the venue where networking will take place.
I call it “goal-based networking,” and here’s how it works:
• “I will get a direct opportunity”
This could be a new client, an invitation to join a prestigious organization, a job offer, a promise to donate money to your pet cause. While Goal #1 is ideal, it unfortunately doesn’t happen at most networking events.
• “I will get a solid lead on a direct opportunity”
This is almost as good as the first goal, because it moves you closer to what you really want. Goal #2 should happen at the vast majority of networking events you attend. If it doesn’t, you’re not meeting enough people or not asking the right questions.
• “I will meet new people and learn valuable information”
This is the bare-bones minimum goal that you should achieve at every single networking event you attend.
Make a commitment to network more and remember to think about these three goals before walking into your next networking event. Setting these goals consistently over a long period of time will maximize the return from your investments in networking. That means you increase your public profile, connect with the right people and become that person who always seems to know about business happenings long before your colleagues do.
