Hire Manufacturers’ Representative & Independent Sales Rep on CommissionPeople.Com for as low as $99.

In the present times, not all businesses can afford to pay regular salaries to their sales employees. Businesses having low capital, such as new startups and small business owners may find it difficult to hire full-time sales rep. Reason being that apart from salary, businesses have to take care of employee-related additional liabilities such as any legally mandated insurance, additional benefits and paid leave. As a result of which, these factors discourage many business owners from having full time employees. It is due to these reasons that businesses are increasingly turning towards hiring people who get paid on performance basis. These are generally commission-based sales reps. In United States, these type of sales reps are known as Manufacturers’ Representative or Independent Sales Rep. These two terms are often used interchangeably.

Manufacturers’ Reps operate within a defined territory. They may handle similar but non competing lines or products of other companies in the market. They work as an agent and are paid commission percentage on the number of product they sell. Some of these reps allow for stocking and warehousing of products for a fee. Since they are paid on performance basis, they are more like an entrepreneur.

It has been observed that an Independent Manufacturer’s Rep may be highly beneficial to businesses if managed properly. In fact, virtually any kind of product and services can be sold with the help of these commission-based sales reps.

The engagement between a hiring company and manufacturers’ sales representative are based on agreed upon contractual terms and conditions. It is because of this reason that legal agreement must be prepared with due care so as to avoid conflict.

WHY TO HIRE MANUFACTURERS’ REPRESENTATIVE / INDEPENDENT SALES REP

No overhead strings attached

As discussed, the major factor for businesses to hire Manufacturer’s Representative is that there are no employee overhead costs associated. Rep gets paid on agreed-upon commission when he completes sale of products. If he does not sell, he gets no commission. This benefit encourages companies to run an entire team consisting of commission-only sales reps. They may be engaged to expeditiously represent a product line in different locations and territories.

May help penetrate new markets and test product demand

Manufacturer’s Sales Representative may prove to be very helpful in understanding and testing a new product in a market. They may guide companies about the potential, salability, and demand of the product in the market. They may do so by making use of their already set and established business networks and vast experience they have.

A business may hire a representative and see how the product performs in target market. It is quite often the case that a rep carries several similar but non competing lines of different companies. These sales reps may provide valuable insights about the market trend. They may also advise about correct marketing strategy needed to sell products.

Beneficial to Exporters & Startup Companies

It is a well known fact that small businesses and startup remains vulnerable during their initial days of starting up. For this reason, selling a product with the help of commission based manufacturer’s representatives may be a wise decision. At a later stage when the sale increases, companies may think of hiring full-time sales reps as per their requirement.

Also, exporters and foreign businesses may find this way of sales a better option to enter a new country.

Governed by Contractual Terms

The relationship between companies and these type of sales agents works strictly as per agreed-upon contractual terms and conditions. This allows both parties to operate within the set framework. Parties may decide upon commission structure, territory within which the sales rep has to operate, rewards, incentives, marketing materials availability, training, etc. as per mutually agreed upon terms.

Solo Agent and Big Rep Agencies

Independent manufacturer’s representative may work as an individual or sometimes collectively as a group in the form of an incorporated company. There may be several sales reps operating in different territories under the banner of a big rep firm. These rep firms have the ability to provide brilliant insights into the marketing strategies that may be needed by new companies to enter market. Businesses tend to gain instant access to industry expertise and knowledge of a particular country or region by associating with these rep firms. This type of knowledge would have otherwise taken years to gain or could have been expensive to acquire for a business.

WHY NOT TO HIRE MANUFACTURERS’ REPRESENTATIVE / INDEPENDENT SALES REP

Lack of control

Hiring companies (Principal) may find it difficult to have absolute control over Manufacturer’s Representatives. It is important to understand that this relationship is not of an employer-employee but more of a strategic partnership. It is similar to business to business relationship.

Not suitable for specialized and technical products

There are large number of reps who are not suitable to handle sales of specialized products and services. For products and services that demand high level of technicality and specialized expertise, it is better not to go for unqualified sales reps.

For such kind of products or services, hiring a skilled full-time representative may be a better option.

But again, it depends upon the qualification and expertise of the rep. If an independent sales rep is already having experience and selling a similar non-competing product line then he may definitely be considered for hiring purpose.

After Sales Service

Most of the Independent Sales Representatives hesitate in providing after sales service. This is due to the reason that they are mostly concerned with making commission out of sale and are quite often reluctant in providing after-sales service. If a rep is ready to provide after-sales service then that is an added benefit in getting associated with that rep.

WHERE TO FIND MANUFACTURERS’ REPRESENTATIVE / INDEPENDENT SALES REP

Specialized websites –Websites such as CommissionPeople.Com may be particularly helpful as it deals exclusively with commission only sales agents. It allows hiring companies to post opportunities and charges $99 per listing (Click to see pricing). This is a better way to pay and hire them as Manufacturers’ Sales Representatives mostly prefer to work with financially sound and established companies. Opting for free listings such as on LinkedIn, Facebook, etc is not advisable. A paid listing may give a significant boost to the brand and reputation of a company as compared to free internet platforms. Further, Commissionpeople.Com offers full recruitment service for companies interested to outsource hiring process (Click to know about Recruitment Service). Linkedin– Businesses preferring to list free opportunity may look for Manufacturers’ Reps through LinkedIn group specifically dedicated for them such as this. Facebook– Facebook may also be a good place to reach out to these type of commission sales reps. Facebook page such as this may be helpful.