Independent sales representatives are a vital link in the selling process. They have been on the scene for thousands of years. Perhaps the greatest independent sales rep of all time was St. Paul. In the face of overwhelming adversity, he sold Christianity to the Western world.
The benefits of using a network of independent sales reps are compelling. You save cash by eliminating the expense of employee benefits. Sales reps are a variable expense. They work on commission and do not get paid until they sell something. Recruiting and training of sales reps is less costly as you do not incur the expense of advertising for a sales position. Neither do you have the extensive training normally required for newly hired company sales positions. The independent sales rep is already established in the market with his own network of contacts. His contribution is that you are plugging into his network of pre-existing sales contacts
Despite the benefits, the process of fielding a national team of independent sales reps must be managed with the same diligence as managing a company sales force in order to meet your sales goals. The process starts with recruitment.
Make sure your sales rep candidate calls on target buyers within your designated geographic area. Ask whether he calls on the buyers with the frequency you need as it does not advance your cause if he calls on buyers once a year when you need a call frequency of once a month. Ask how often the retail product sales rep (or his agents) does store checks. Request copies of his store check reports. Expect to encounter overlap and duplication. Make sure his dominant area of coverage agrees with the geographic sales territory you want covered.
Make sure you do not get the short shrift relative to other products your sales rep candidate represents. Demand that he not represent any competing products, but understand, though ideal, it is probably wishful thinking. Have him explain why he believes your product is a winning proposition for his company. Be the judge.
Do the necessary due diligence as your sales rep is your face, your persona in the market. make certain the sales rep doesn't have a checkered reputation within the industry, as this will reflect upon your company. Make sure he is a team player. Get references, both from customers in the market and from other principals the sale rep represents.
Make sure your sales rep candidate has contacts and actually calls on the buyers within your targeted channel(s) of distribution. Ask relevant questions about his contacts and relationships with key players.
Execute the contract only if the sales rep candidate meets every requirement. Make sure the contract covers all areas of the relationship between your company and the sales rep.
Ask about his management information systems. Assure yourself he is generating the periodic reports you need to keep score on performance. Make sure he generates competitive activity reports. Demand quality within the reports Make sure, too, his system integrates with your customers' systems. Insist that his systems are compatible with yours to facilitate timely communication about issues such as just-in-time inventory and delivery.
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