Why use Independent Sales Reps? Commission only Sales Reps:
- Only get paid on results - lower your cost of sales
- Cost less than payroll sales people
- Can expanded your sales coverage - more feet on the street
- Have knowledge of industries and complementary lines
- Can replace non-productive sales channels
- Already know the territories and customers
- Can make introductions to new clients
- Provide fast penetration and more new orders
Many companies are finding that as the economy recovers, they are ready to increase sales by improving marketing and adding sales power. But they don’t want to increase the overhead.
How can you do it? One way is by utilizing the sales rep model.
Sales representatives (or agents as many prefer to be called) meet with buyers and present your products, along with a variety of other similar products and services. The reps are independant contractors, meaning, they are not an employee of your company and are not paid a salary. Instead, you pay a commission on the sales they do make.
The Manufacturers Agents National Associations has some tools to help you Find Sales Reps that work in your Industry or Area.
Here’s an article from INC magazine on How to Work with Sales Reps.
Remember, when a sales rep brings in a new customer, that customer is actually the reps, not your company’s and if you change reps, you’ll lose the customer, so consider carefully what accounts you will have “in-house” for your employee sales people and which will be outside. Also make sure that your contract is set up to pay commission on revenue (when you get paid, you then pay the rep), not just on activity.