This month Agency Sales magazine focuses on legal issues. Like others, there is a vast difference between the true professionals in the business and those reps working towards that level. The true professionals know that agreements between manufacturers’ reps and their principals must work for both parties. Otherwise they ultimately do not work for either. What If the principal offers an agreement that does not meet this criterion? The professional will push back and negotiate an agreement that does. This significantly increases the probability the relationship will succeed. By pushing back, the manufacturers’ rep gains respect in the eyes of the principal.

Compare this to the novice manufacturers’ rep. When the prospective principal sends the agreement, the thing they usually do is sign and return it. They may not even read it. Please, don’t be intimidated. While the dollar impact at the time of signing may be insignificant, years later when it is, significant sums will be at stake. Don’t be telling yourself then, “If I could only do this over again…”

We also hear from members that they just want a really simple agreement, a one pager. When you initiate the relationship with the other person, there may be a very high level of trust between the two of you. What happens when that other person leaves the firm and is replaced by someone with vastly different ideas and attitudes about manufacturers’ reps? What if they decide to terminate the agreement? What if in the meantime, you have built up a significant level of business for this principal? How you worded the agreement way back when will have a significant impact on your residual compensation. Will that simple one pager really adequately cover all the bases?

We also hear from members they don’t believe the agreement is worth the paper it’s printed on. Not true, we’ve seen a number of members who over the years have won judgments valued at hundreds of thousand dollars because they had well-written agreements. They’ve also adequately protected themselves when product liability issues arise.

Which brings me to my last point. MANA has 28 really knowledgeable and experienced attorneys as members. They are here to help both manufacturers and manufacturers’ reps create mutually beneficial agreements. These agreements accurately reflect in legal language, the terms negotiated by both parties. Our professional members ask for legal help when they review agreements. Why not follow their lead and do the same? A great way to become more professional and gain more respect.