Q.
For what geographical territory or market area are you seeking
representation ?
A.
Reps tend to be a “product” of their territory or
market and usually have a long tenure in the territory: it is
the first key strength that a principal seeking representation
should look for.
Q.
Is your product line compatible, but not competitive with the
product lines the Rep currently represents?
A.
Synergy of product lines is a key leverage the Rep uses for
market and customer knowledge as well as customer relationships.
Although represented separately, each product line in one respect
or another should reinforce the other lines.
Q.
What sales and marketing services will your product line require?
A.
One of the main advantages of utilizing Reps is their ability
to spread cost over several manufacturers. If your product line
will require special services that the current lines do not,
it may be difficult to do unless compensated for separately
from normal commissions.
Q.
Do your marketing philosophies and policies match those of the
Rep and his current principals?
A.
The success of the Rep / Principal relationship hinges on the
blending of the two cultures.
Q.
Does the Rep have the people and infrastructure in place to
support your objectives?
A.
If the Rep does not, then you should be prepared to share in
the cost of additional personnel or investments.
Q.
Do you have good systems in place for communication of leads,
quotes, orders, invoices, and product information to support
a Rep sales force?
A.
Reps require the same support that you would provide a direct
employee: the faster the communication, the better. Keeping
Reps in the dark until it is convenient to send information
is kin to sending them into battle with one hand tied behind
their back. They can only be as effective as you make them.
There is no such thing as too much information supplied too
fast.
Q.
Is the management of your company fully committed to utilizing
an outsourced field sales force and are the other employees
informed and comfortable with the idea?
A.
Warning!!! Reps are not a “fast” way to go to market,
new orders will not start to flow immediately. There will be
a honeymoon stage and a growing of self confidence in each other.
Reps cannot abandon their time and efforts of the Principals
that are keeping them in business to pursue a new line, and
not every product line can be sold on every sales call. Reps
will provide you a continuity of representation through good
times and bad. Their object is to “build brand” and
not just sell product.
Q.
Do you have “realistic” expectations of your Rep and
have the metrics in place to measure progress?
A.
One of the most significant problems Reps encounter are unrealistic
expectations that are not shared “up front.”
Q.
What time, resources and compensations are you prepared to invest
in a successful relationship?
A.
Today's Reps are not just a sales force paid on commission for
the orders they produce. Today’s Reps are a business in
business to make a profit. They do not just look at “market
potential” or what might be, they look at the monthly income
stream less the cost of doing business and work from there.
They are also a cash business, not accrual, they cannot pay
bills or borrow money on “commissions due.” The key
to any Rep motivation is higher commissions paid faster.
If your company does not have an existing commission flow from
the territory, you may have to consider a retainer, draw on
future commissions or longer termination provisions. These quickly
becoming the “norm” for pioneering new lines.
Q.
Are Rep contracts or agreements important?
A.
Yes, if you want to avoid problems with the IRS and avoid litigation.
MANA has an excellent specimen contract that has detailed rationales
for you to use as a guide. It is fair to both parties and has
been reviewed with several attorneys specializing in Rep Law,
and these attorneys are available to assist you in formulating
a mutually profitable relationship.
Q.
Are Rep certifications, like CPMR and CSP, important?
A.
CPMR, Certified Professional Manufacturer Representative, is
a 3 year program, one week per year and an exam each year. It
is a program that specializes in how to run a professional Rep
firm and is a significant investment in time and money for the
Rep to achieve.
CSP, Certified Sales Professional, is one week program and exam
that specializes in professional selling.
Is the Rep’s investment in his profession important to
you?
