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The Scoop on Independent RepsIf you can't afford to hire a sales force within your company, you may have considered selling through independent representatives instead. There are many benefits in using independent sales reps as well as drawbacks, and it's important to decide if they provide the right solution for your company. Good independent representatives can benefit your company by: -Bringing experience, expertise, and existing contacts -Saving money and increasing sales -Requiring little management time and effort -Offering a stable and long-term relationship Tom Seavey, Marketing Director of Stenhouse Publishing, said that his company values independent reps because they are at the peak of the profession. He attributes independents' success to their energy and motivation, intimate territory knowledge, strong market awareness, and having an established, loyal, customer base. As Charlie Eisenberger, a veteran New Jersey and New York City independent contractor with twenty-five years of experience selling a variety of products, put it, "If we don't sell we don't eat." He described those in his profession as committed, ambitious, and highly motivated. Because reps work on straight commission, and their livelihood depends on how good of a job they do, they go the extra mile to make the sale. Using an independent representative should also be cost-effective. Peggy Lanier is Founder and President of Lanier Thinking, a sales and marketing management company specializing in building and managing independent rep organizations for educational companies. She described how companies can achieve their sales objectives with this variable-cost method - the company only pays when the rep produces, so cash outlay directly corresponds to cash income. If your company chooses to hire an independent rep, the next step is finding the right one. There are various options, including utilizing a management company to identify, recruit, train, and manage. You can also speak to your network of contacts to find out who they have employed, get referrals from customers, or ask for recommendations from other successful independent reps. Once you have secured a good independent representative, you'll need to establish a solid working relationship and find ways to motivate them. This can be accomplished through: -Supporting with effective sales training, high quality collateral, and sales materials; -Respecting their knowledge and independence; -Treating them as you would an in-house sales team; -Giving them the best commission you can afford; -Communicating the products' major selling points so they believe in its quality; and -Trusting them to do their job. Although many companies have had great success with independent representatives, they are not suitable for a number of different types of companies and situations. For example, reps are less interested in start-ups or companies with new products and no track record. Eisenberger said that most reps look for companies that have a complete line, rather than a single book to sell. Other drawbacks include competition and control. A rep can carry a number of lines, and your products may not always take priority. But having your list bundled with other company's similar products can work as an advantage as well, Seavey pointed out, because customers know they can go to the rep to find all the materials they need. Also, if you're looking for a closely controlled sales force, reps might not be the best fit because they make their own schedules and decisions.
Questions, ideas, or in need of more information? Please contact Stacey Pusey at 302-295-8349. |
The National Association of Independent Publisher Representatives |
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© 2011 The Association of Educational
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