Poor performance and lackluster results are deadly for a rep agency.

What do we do about Louie? Great question. Louie is a salesperson working for a rep firm covering a territory with base compensation, incentives, and expenses covered by the company.

What is expected of Louie?

The first thing is sales results. In the rep business that means specific revenue goals for each of the lines the agency represents. That seems simple enough, but it isn’t because personalities and market issues play into the situation.

In some cases, the major lines’ results are good for the rep firm in most areas, but because of the market in a specific territory, it may be particularly hard to achieve sales goals. But, in every case, there should be a defined sales objective for a specific period of time regardless of who the salesperson is. On that basis not achieving goals that were mutually agreed upon has to have consequences.

Of course, there are reasons the salesperson did not achieve the goal for a particular line in a particular territory for a period. Starting with the overall situation in the territory the judgment process is highlighted. Is the problem one line in the territory? Or is it a few of the lines? Is the salesperson under-performing with every line that he represents for the agency?

How far off of target is the salesperson? What is the salesperson’s reputation with the customers? What is the salesperson’s reputation with the principals that he represents?

Unfortunately, most of these evaluation points are very subjective. The actual dollars of sales are not subjective.

Is there a break-even point for the salesperson? Judging by commissions earned from sales in the territory vs. cost of the salesperson where does the salesperson stand? Obviously, if the salesperson is consistently below the break-even there is a real, immediate problem.

If the results are marginal and the salesperson is doing enough business with the lines to earn enough commission to pay for him/herself then the decision process can go beyond the immediate sales results. Reviewing all of the other subjective issues that have been mentioned can be useful.

The bottom line is, getting into the nitty gritty of a salesperson’s performance, costs and overall value to the company is an urgent matter that cannot be put on a back burner. Why? The answer is the principal. The lines that are represented need results. The lines demand results. The agency cannot afford to underperform in any territory for long. There is always someone in the manufacturer organization who will wake up to the lack of performance and ask, “Why do we have this firm representing us? They aren’t doing anything.”

If your agency is facing issues with one or more salespersons it is time to get tough with not only the salespersons but with yourself, the manager.

Results are the only thing that counts in the rep business. Commissions must be earned or commission potential will disappear.

Asking for specific results from the salesperson is not unreasonable. It should be the rule. It should be totally visible to both the salesperson and the management. Proactive management has to be the rule for the agency.

No excuses, no delays, no procrastination!

Good luck, good managing, and good selling.

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