Motivating a sales force — an area of shared interest to manufacturers and independent representatives — was introduced to the MANA LinkedIn discussion group and the results shed considerable light on why so many manufacturers opt for an outsourced sales force.

When an agent was invited to speak on the subject of the many benefits of outsourcing sales over a company direct sales force, he asked for input from his agent peers and from principals experienced in working with representatives. He described his task this way: “I have no problem espousing the many benefits of the rep model. However, part of the request was to highlight the differences between motivating the two types of sales force. Thus, I would very much appreciate any comments, wisdom, anecdotes, comparison tables and suggested reading that might be useful in this regard.”

This representative obviously went to the right place for advice since there was little passage of time before he heard from others and no shortage of the desired guidance.

First up, an industry consultant noted that “Motivating an independent sales representative who works on straight commission is a lot different than motivating an employed company salesman who is guaranteed a salary — whether or not he achieved his goal.

“What the employed company salesman loses is only his small bonus. He still receives his salary. The independent sales representative, on the other hand, loses total income on a project when he fails to close the order.”

He continued that while “I agree with you that independent sales representatives are much better for manufacturers for many reasons, they actually have to be motivated to spend more time on a product or system vs. the other lines that they represent. The company salesperson has to be directed and totally controlled. The only motivation for a factory salesman is the loss of his job if he does not perform. For his part, the agent lives that threat even though he makes his goals. The representative has a 30-day contract, which can be terminated even when he is the top representative for the manufacturer.

“The most effective way I have found to motivate a sales force through my career is to adopt a three-pronged approach:

• One, make sure the independent sales representative is very technically trained on your product or system.
• Two, make sure your commission schedule is as good — or preferably better — than his other lines.
• Three, nurture your relationship with the independent sales representative from a company, to a person, to a friend. It’s critical to remember that friends sell for friends much better than mere colleagues. That has proven to get more time from an agent than he gives to his other lines. And this approach results in more orders.”

Next, a fellow agent offered, “Independent sales reps are entrepreneurs and self starters. They should be self motivated and treated as any partner or external service provider is. An employee is more likely to be motivated to do just enough to ensure they keep their job and pick up their monthly paycheck. I believe the best way to motivate your reps is to treat them with respect and as partners in your business — not disposable or cheap labor.”

Another manufacturer with a successful track record of working with independent sales explained, “I have a mix of company salespeople and independent reps on my team. I have found that there is little need to actually motivate a good independent representative since they only eat what they can kill. However, I do need to work hard to make sure that I keep my products and systems fresh in his mind. If a rep has 10 product lines, I will likely get 10 percent of their time. If I do not maintain regular contact with that rep and another manufacturer does, I may lose some share of the rep’s time. I have found that the best way to keep my share of a rep’s time is to communicate with them regularly. This can be as simple as a five-minute phone call to check in or as complex as training for a new product or system.

“On the flip side, company salespeople that have a decent base salary do require motivation from time to time. This is a topic for another day….”

And finally, another manufacturer shared his observations on the subject of whether or not independent sales representatives needed the same level of motivation as factory direct sales personnel: “It’s been my experience after several years of working with reps that agency owners don’t really have to spend a great deal of time prodding their salespeople into action. Those who have been attracted to agency selling usually do so with their eyes wide open. It’s not the same as working as a salaried salesperson for a manufacturer. However, as with most human activity, there is always the drive to accomplish more, to do something better today than it was done yesterday. After all, there wasn’t a pressing need for someone to fly non-stop around the world. We had already landed men on the moon; but for the individual involved, there definitely was a personal pressing need. So too is it with the independent manufacturers’ representative — if he truly has a desire to be successful, he’ll take care of motivating himself.