How to Become an Independent Sales Rep
How to Become an Independent Sales Rep
a. Do I have the financial stability to go 2 - 3 months without receiving a commission check? When a principal is looking to outsource their sales functions, they are either looking to enter into other territories or need assistance to service and improve existing client relationships. Question 1 is of particular importance for a new and untapped market. The reality is that there is a sales cycle associated with all products which, most often, span weeks or even months. Principals will rarely pay commissions based on unfulfilled orders. Payment schedules can also typically range from COD up to Net 45 days. Including the time to make the first sale, delivery, payment to principal, and commission check mailed, it can be several months before you receive your first commission check.
b. What Industries Do I Have Experience In? Principals expect prior experience with a certain product range or industry type. This holds true in virtually all industries. To start out successfully, it is important for you to have contacts to make initial presentations. Principals may be willing to give you a line but without experience, it can take a significant amount of time to develop sales.
2. Start Your Business. As an independent rep, you should start your own business (LLC, S-Corp, C-Corp, etc.). There are many advantages ranging from tax benefits to liability protection. It is suggested that you speak with an accountant to determine what the best option is for you. Most accountants or lawyers can help set up the business for you. There are also many online sites that can perform this function (depending on services provided, typical pricing ranges from $100 - $500).
3. Business Plan. Rather than sending out a Resume, principals will be impressed if you have put together a business plan which will detail your goals and objectives. The best thing about being an Independent Sales Rep is that there are only two primary functions: Sales and Customer Service. The principal takes care of all other aspects which include manufacturing, research and development, quotations, invoicing, shipping, and quality control. The business plan doesn't need to be long but should detail simple points such as:
a. Industries Covered
b. Territories Willing to Cover
c. Revenue Sources
d. Preferred market segment
e. Sales focus (OEM's, end users, distributors, resellers, etc)
f. Product/Service focus
g. Organization structure - Will you be alone or do you plan on having employees?
h. Facilities
* Will you be a home-based business or will you have an office?
* Will the office have storage for consignment or warehousing?
i. Policies and Procedures
4. Finding Lines Available. With steps 1 - 3 behind you, your objective now is to find product lines. A few sources include:
a. Trade publications and trade web sites.
b. Trade Shows
c. Use a commercial website such as RepHunter.
5. Landing that Line. After you have identified several lines available, it is important to research the company and get a good understanding of their products and needs. Fundamental needs include the following:
a. Principals are looking for reps to help develop a relationship between themselves and the client. The basic focus is building strong relationships.
b. Principals want their reps to be professional and prepared. For new reps, a marketing plan can really be a big advantage.
c. Principals need to know that you will be giving their products time and that you are prepared to cover the required territory.
d. In the absence of an established revenue stream, principals need to know that you are financially stable. The last thing they want to do is spend time and money over several weeks to wind up having their rep drop them for financial reasons. By conveying your goals to meet these needs, you will stand a better chance of landing that line to represent.
6. The Sales Process We break down sales into two primary functions:
a. Getting Appointments. We consider the process of getting good face to face sales time with a new customer as 50 percent of the sales effort. For many businesses, the purchasing power can fall on one of several positions. In a manufacturing facility, for example, purchasing can be the responsibility of Purchasing, Maintenance, Engineering, Plant Managers, Store Room managers, Inventory Control, Office Managers, etc. One of the hardest things to do in a complex business environment is to get the right people to listen to your presentation.
b. The Sales Pitch. At the start, this is an area where the tools available to you become most valuable. For any new rep, the absolute best resource to help you become successful is to bring in your principal's sales manager. While this method may not be practical for all cases, it should be considered where applicable. Long term, it will be your responsibility to perform sales presentations. For the first few months, however, the principals will be very happy if you can set up sales presentations which will maximize their time and efforts. It serves as an excellent method of training and will show your principal that you have the ability to get to the right people. Having your sales manager make some initial presentations will also help improve closing rates and shrink the overall sales cycle. The other advantage includes credibility.
7. Set up a web site. It's easy and a great way to promote your new business.
8. Keep your new principals happy. The best way is to make sure they know you are actively promoting their products include:
a. Write Call Reports.
b. Get quotation requests.
c. Ask lots of questions.
d. Request travel time with your sales manager, if applicable.
How to Become an Independent Sales Rep - To learn more about this author, visit Jeff Simon's Website.
Like this article? Share it with your friends
1. Two key questions. If you are interested in becoming an Independent Sales Representative, there are two key questions that you need to ask yourself:
a. Do I have the financial stability to go 2 - 3 months without receiving a commission check? When a principal is looking to outsource their sales functions, they are either looking to enter into other territories or need assistance to service and improve existing client relationships. Question 1 is of particular importance for a new and untapped market. The reality is that there is a sales cycle associated with all products which, most often, span weeks or even months. Principals will rarely pay commissions based on unfulfilled orders. Payment schedules can also typically range from COD up to Net 45 days. Including the time to make the first sale, delivery, payment to principal, and commission check mailed, it can be several months before you receive your first commission check.
b. What Industries Do I Have Experience In? Principals expect prior experience with a certain product range or industry type. This holds true in virtually all industries. To start out successfully, it is important for you to have contacts to make initial presentations. Principals may be willing to give you a line but without experience, it can take a significant amount of time to develop sales.
2. Start Your Business. As an independent rep, you should start your own business (LLC, S-Corp, C-Corp, etc.). There are many advantages ranging from tax benefits to liability protection. It is suggested that you speak with an accountant to determine what the best option is for you. Most accountants or lawyers can help set up the business for you. There are also many online sites that can perform this function (depending on services provided, typical pricing ranges from $100 - $500).
3. Business Plan. Rather than sending out a Resume, principals will be impressed if you have put together a business plan which will detail your goals and objectives. The best thing about being an Independent Sales Rep is that there are only two primary functions: Sales and Customer Service. The principal takes care of all other aspects which include manufacturing, research and development, quotations, invoicing, shipping, and quality control. The business plan doesn't need to be long but should detail simple points such as:
a. Industries Covered
b. Territories Willing to Cover
c. Revenue Sources
d. Preferred market segment
e. Sales focus (OEM's, end users, distributors, resellers, etc)
f. Product/Service focus
g. Organization structure - Will you be alone or do you plan on having employees?
h. Facilities
* Will you be a home-based business or will you have an office?
* Will the office have storage for consignment or warehousing?
i. Policies and Procedures
4. Finding Lines Available. With steps 1 - 3 behind you, your objective now is to find product lines. A few sources include:
a. Trade publications and trade web sites.
b. Trade Shows
c. Use a commercial website such as RepHunter.
5. Landing that Line. After you have identified several lines available, it is important to research the company and get a good understanding of their products and needs. Fundamental needs include the following:
a. Principals are looking for reps to help develop a relationship between themselves and the client. The basic focus is building strong relationships.
b. Principals want their reps to be professional and prepared. For new reps, a marketing plan can really be a big advantage.
c. Principals need to know that you will be giving their products time and that you are prepared to cover the required territory.
d. In the absence of an established revenue stream, principals need to know that you are financially stable. The last thing they want to do is spend time and money over several weeks to wind up having their rep drop them for financial reasons. By conveying your goals to meet these needs, you will stand a better chance of landing that line to represent.
6. The Sales Process We break down sales into two primary functions:
a. Getting Appointments. We consider the process of getting good face to face sales time with a new customer as 50 percent of the sales effort. For many businesses, the purchasing power can fall on one of several positions. In a manufacturing facility, for example, purchasing can be the responsibility of Purchasing, Maintenance, Engineering, Plant Managers, Store Room managers, Inventory Control, Office Managers, etc. One of the hardest things to do in a complex business environment is to get the right people to listen to your presentation.
b. The Sales Pitch. At the start, this is an area where the tools available to you become most valuable. For any new rep, the absolute best resource to help you become successful is to bring in your principal's sales manager. While this method may not be practical for all cases, it should be considered where applicable. Long term, it will be your responsibility to perform sales presentations. For the first few months, however, the principals will be very happy if you can set up sales presentations which will maximize their time and efforts. It serves as an excellent method of training and will show your principal that you have the ability to get to the right people. Having your sales manager make some initial presentations will also help improve closing rates and shrink the overall sales cycle. The other advantage includes credibility.
7. Set up a web site. It's easy and a great way to promote your new business.
8. Keep your new principals happy. The best way is to make sure they know you are actively promoting their products include:
a. Write Call Reports.
b. Get quotation requests.
c. Ask lots of questions.
d. Request travel time with your sales manager, if applicable.
How to Become an Independent Sales Rep - To learn more about this author, visit Jeff Simon's Website.
Like this article? Share it with your friends
 | |
 |
No article feedback found. |
| |
Leave Your Feedback |
 | |
| |||
David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
|||
Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
|||
Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
|||
Linda RichardsonLinda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website |
|||
John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
|||
George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
|||
Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
|||
Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
|||
|
To learn more about the Evan Elite Author Program please contact us. | |||
 | |
|  |
Subscribe to Jeff's articles
 | |
|
|  |
 | |
|
| |
 | |||||||
|
 | ||
|
||
|
||
|
||
|
| ||
 |
| Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details. |
|
|
 |
| Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media |
|
|
 |
"Learn straight from Evan how you can Make a Full Time Income (And More) from a Website"
Click Here To Learn More |
|
|
|
|
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
|
|
|
 Cash Flow Forecast Samples Inspiration Business Plan Put Yourself Into the Top 3% Managing Customer Relationships Business Building Check List |
|
 | ||
 |
Top 50 Political Blogs
Top Political Blogs of 2009 | |
 |
Top 50 Geek Business Blogs
Top 50 Geek Business Blogs | |
| ||
 | ||||
| ||||
|
| ||||
| ||||
|
|
|
|
|
||||||||||||
|
Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
|
|
|
