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MAFSI has a large number of publications, including surveys and trend analysis available as well as past issue of our magazine, OutFront. If you are looking for something that you do not see here, please call MAFSI Headquarters at 404-214-9474 or email info@mafsi.org.

New to Reps? Recommended Reading:

Common Questions about Manufacturers' Reps

Article on Outsourcing Field Sales

Benefits of Outsourcing Field Sales

Best Practices for Building New Territories and Pioneering New Lines

How Ready Are You to Work with Professional Sales Companies?
One of the questions manufacturers need to ask themselves before starting a rep search is, are we really prepared to go to work with a network of professional sales company partners? Jumping in before you are ready could have disastrous consequences. We’ve prepared the following questionnaire to help guide you to a realistic decision.
1. How many years experience does your company have in outsourcing the sales function?
2. Are you willing to consider using an agreement that is fair and balanced and protects the interest of both parties?
3. Will you consider sharing the costs of developing business in territories where there is no existing business?
4. Will you provide exclusive territories to your reps (no house accounts)?
5. Do you have a complete marketing support plan in place to support your outside sales program?
6. Is the top management of your company committed to the use of reps? Are they willing to demonstrate this?
7. Are you willing to make a long-term commitment to a fair and competitive rate of commission?
8. Do you understand that attaining mutually agreed upon goals rather than arbitrary quotas is the best way to work with your outsourced sales partners?
9. Do you understand that regular, written reports tend to destroy the strategic advantage that a multi-line sales professional has over his or her direct competitors and are you willing to accept timely verbal and short e-mail communications instead of call reports?
10. Do you agree that your company and your reps should operate as Partners in Profits rather than employer/employee?

Why Sell Through Professional Multi-Line Field Sales Companies?

• Predictable Sales Costs That Go Up And Down With Sales — The manufacturer and sales agency agree in advance on a set rate of commission and the agency pays all selling expenses.
• Lower Sales Costs — It is estimated that today’s average industrial factory-direct salesperson costs $150,000 per year. Producing $2,000,000 in new sales each year, the cost of sales would be 7.5%. A field sales agency producing the same volume at a 5% commission rate would cost only $100,000.
• Increased Sales — The average factory-direct salesperson is in a territory for two years or less before he or she is promoted, transferred or defects to a competitor for more money. The multi-line sales agency has a lifetime commitment to the territory, thus holding better relationships with the customers.
• Immediate Access To The Market — Sales agencies are an experienced sales team already in the territory. They are familiar with the area and have good prospects ready to consider the new line. Many agencies have multiple sales personnel and provide much deeper coverage than a single direct sales employee. Small, single-person agencies can provide excellent coverage in many niche markets.
• Free consulting services — Most independent sales agents have 15-20 years of successful corporate experience under their belts. Many have held positions in large corporations prior to becoming agents.
• Cost of Training And Turnover In Sales Personnel Is Eliminated — A new agent has only to learn your company’s products, culture and systems, and many agents won’t even need product training. All are well-versed in selling skills so you won’t have to train them how to sell. The average agency has been in business in the same territory over 20 years, whereas the average employee only stays in the same place two years or less.
• Highly Experienced, More Aggressive Sales Force — Today’s multi-line field sales agent is highly educated and trained. Since there is no base salary to rely on, they must sell to live.
• Sales Forecasting Is Equal Or Superior To A Direct Sales Force — The volume of future sales is no less predictable with agents, but it may be better since so many of today’s agents use sales analysis and forecasting methods which are often more sophisticated than those of the manufacturers they represent.
• Broader Sales Context For Your Product — Because agents sell several compatible items, they call on a wider variety of prospects and customers, often finding applications for products denied the single-line salesperson. The easiest person to sell something to is the customer who is already buying from the salesperson!
• Provides Marketing Flexibility At Less Cost — Sales agents can increase your volume by selling outside your present marketing territory. Agents can also sell a new line without conflicting with your present sales organization.
• Creates A Systems Approach To Selling — Most customers today will agree to see and buy from only those salespeople who take problems off their desks and bring opportunities to their attention. The multi-line, complementary package of products tends to make sales reps systems-oriented rather than a single-product-oriented. Customers welcome these consultative sellers.
• Every Call Is A Relationship Call For Your Company — Even when the agent doesn’t present your product, he or she is cementing the customer relationship which will benefit your company in the future.
• Multi-faceted, Multi-skilled Sales Team — Many multi-line field sales agents also have multi-industry experience, some holding professional certifications in a variety of industries.
• Better Market Intelligence — Since they carry a mix of products, multi-line agencies have a greater diversity of customers, and often can get wind of industry trends long before a factory direct salesperson.
• Vested Partner In Manufacturer’s Success — Since, as we mentioned previously, an agency must sell to live, your agency is interdependent with your firm. Your success is their success.

Recommended Reading