An Independent Sales Rep Agreement Defines Relationships

A mentor of mine once told me that sales agreements are the highest model of social engineering, While I may not concur that they’re the highest example. They definitely fill the roll of social engineering. An excellent sales person, and you certainly need a good one, will focus like a laser beam on what that agreement tells them to do.

Especially in the case of an independent sales rep. They are trying to see if your business or another will offer them a greater return and what they must do to receive that. All of the answers to those questions should be within your independent sales rep agreement. If the details of your arrangement are missing then you are susceptible to things being handled through interpretation and nothing good usually comes from that.

So make sure that you have covered all your bases whenever you develop your agreements. The more you have spelled out the more clear your relationship will probably be with your independent reps. This applies to both the legal aspects of the relationship and how and when they get compensated.

One of the critical things you must do is just be sure you have compared your agreement together with your company objectives. If you are far more concerned with volume then pricing, then put a bigger commission emphasis on bringing in profitable business. If you are just compensating on volume then your reps will lower prices to increase volume. So know the mix of price, profit, target marketing, etc and relate that to your compensation goals. I Need Sales Reps

This is almost always a problem for an entrepreneur. But before you attempt to determine how many more you may need, be sure that the ones you have are maximizing the results you’re looking for. If you are compensating your sales reps well and you have done a good job in selecting them, see if you can get more out of them before you look to add more.

Many independent sales reps handle a great deal of different products. They typically also have current relationships with clients that you are interested in. That’s the good news and bad news. Because those relationships are so important to them, they’ll try to focus on the products that will get them the best return with their clients, and may sometimes leave you without the business.

So ensure you know what is driving your sales team and where their priorities are. If you aren’t providing their clients with the best option for success, then you probably are not getting the most out of the present sales force and will end up with more people to manage and less return per person because of it.

So assuming you have dealt with that issue, the best place to look for additional people is to ask your existing sales team. They are usually well connected into the market and will know of people who might also be a good asset to your company. One more great source is potential clients. Ask them who they prefer to buy from and why.

Most companies will be happy to speak with you about something like that if you just ask. It may provide you with an edge if you hire the person they recommend. They’ve got a relationship with that individual and also now feel they also have a vested interest in your business since they helped you place someone.

Independent Sales Reps Vs. Employees

There are pluses and minuses to both ways to handle sales people. The benefits of having an employed sales force is that you have more control over what they do. This does not guaranty results, but it does at least permit you to get more of their complete attention. Independent sales people are just that “independent”. But, because you don’t have the costs associated with bringing them on board and paying salaries, you can save front end expenses and keep your out of pocket down by only paying for actual sales.

This is where that independent sales rep agreement comes in so handy. If you have done your research and know what to offer the marketplace and designed a compensation program that makes it hard for an independent sales rep to look any where else. You then can organize a lot of their focus just by making certain they can maximize their compensation by working with you.

If you layer on top of their compensation, reliable on time delivery of quality products and solid customer support, your probability of holding on to and growing your independent sales force are pretty darn good.

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