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How Do Independent Sales Reps Achieve More Sales?

Independent Sales Reps achieve more sales through multiple-line selling — the process of carrying more than one product line to market — both the effectiveness and the cost-effectiveness of the basic selling function are increased. Because they sell multiple lines, representatives are exposed to more customers within the territory than factory salespeople. Multiple-line selling thus creates a broader, better-defined customer base, resulting in deeper market penetration and increased sales.

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Sales Reps: Employed verses Independent

Ok, so you’ve got a product. You’re all set to take it to market. Only one question left; how do I sell it? That’s easy! I’ve got lots of employees that work for me, they can sell our product! Or wait, should I hire independent sales reps? They have more expertise, but… hm…

Alright, hang on. How do you really decide what’s right for you? Let’s start by looking at using your employees. What are the benefits? They already work for you, so you’re paying them already, and they know your product. I mean they should, shouldn’t they? They worked to create it! But just because they know the product doesn’t mean they know how to sell it, or have the means to do so effectively.

How about independent sales reps? How can they help? Well essentially, sales reps represent your product to various retailers in an effort to sell more of your product. Since this is their job, they cover multiple different lines, usually in related fields, which allow them to better sell your product to more places. This is called “multiple-line selling,” which increases how effectively and efficiently your product can be sold by selling it along with similar products.  In addition, the different lines a rep can cover will increase their exposure to more customers to whom they can also market your product!

To spell it out more plainly, here is a list of advantages to using independent sales reps:

  • Independent reps allow YOU to enter new markets in a faster, more cost-effective way. The rep does this by bringing his existing customer base to the table, and using them to help sell your product alongside the others. Reps know their territories, and have established networks of buyers, as well as other sales reps! For any company, especially new ones, this can be crucial to establishing a solid place in the market
  • When a rep sells one product to a buyer, this can trigger more sales of other products which that rep also carries to be sold as well
  • Reps are paid on commission, leading them to be highly motivated
  • Sales costs are known up front
  • Reps provide increased focus inside their territories, since they have high familiarity with what local buyers tend to prefer. Reps can identify new product opportunities much more quickly than an inside sales force with little knowledge of the territory
  • Reps have a rapport with their customers. Often they live within their community, and have a vested interest in both their customers, and the products they sell.
  • As reps do not work directly for you, they can provide an objective view on product improvement, as well as more customer feedback on new products. Customers often feel more confident in sharing their opinions with sales reps than they do with inside sales staff, leading to more suggestions and constructive criticism
  • Reps provide a faster response to any issues customers may have because they are often in close proximity. They may also seem more accessible to customers.
  • Reps are able to provide consultative selling, customer service, product demonstrations, product and sales training, sales analysis, credit reporting, market research, market development information, product quoting, and current product improvements, new product development, and participation in sales meetings, trade shows and conventions. Some may also offer showroom displays.
  • Finally, Reps can alert YOU to new developments within their territories that could affect YOUR lines!
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What is an Independent Sales Rep?

An Independent Sales Rep, also known as a Manufacturer’s Rep, is an independent business comprised of sales, marketing and customer service professionals and representing two or more related but non-competitive products in a well defined territory, and compensated primarily on a commission basis for goods shipped from the Principal represented. The Principal can be a manufacturer, distributor, importer, or service provider.

This type of sales professional differs from “inside” showroom sales, or telephone sales. An Independent Sales Rep may use the phone, trade shows or showrooms to engage with customers. However, their primary focus is to travel in the field to work face-to-face with buyers and to show product, make sales, conduct training and solve problems. It is very common for Independent Sales Reps to carry several complementary product lines and cover a geography that allows adequate coverage for the account base and provides an income stream that is appropriate for the extensive travel and its related expenses.

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The RepHunter Blog

We have decided to start a blog to help our users get more out of our website. In coming days, we will post items of general interest to Independent Sales Reps, and those who should be using Independent Sales Reps to build there business.

If you have any specific questions about selling via Independent Reps, please post a question.

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Of Interest to Reps

  • Determining Commissions for Independent Sales Reps
  • Features of a Marketing Agreement
  • What Independent Sales Reps Should Expect From Their Principals?

Of Interest to Principals

  • Determining Commissions for Independent Sales Reps
  • Features of a Marketing Agreement
  • How Can I Find Independent Sales Reps or Sales Agents?
  • How Can I Get Independent Sales Reps to Take My Line?
  • Tips For Working With Reps
  • What is an Independent Sales Rep?

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