Sales Rep Commissions

How are manufacturers’ representatives typically paid?

How do sales reps get paid? Manufacturers’ representatives, and all independent sales reps, get paid a commission for the sales they make in their area. The commission is based on the commission rate in their written Sales Representative Agreement with the manufacturer. Reps are paid only after the sale is made. Since the manufacturer rep […]

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What is a manufacturers representative?

A manufacturers representative is an independent business that fulfills the sales, marketing and customer service tasks for manufacturing companies. Manufacturer’s reps are sales professionals with an established client base who, acting as an independent proprietor, partnership or corporation, represent related but non-competitive products or services in a well-defined and exclusive territory. Manufacturing companies primarily compensate […]

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Manufacturers Reps Say “I Am Not Daniel Boone, I Can’t Do Pioneering”

By Charles Cohon “Well, that’s what I used to say about pioneering lines,” says Ralph, a manufacturers’ rep. “I have a well-established line card and I just couldn’t justify taking time away from those lines to promote a product that wasn’t bringing in any income. But a manufacturer who really wanted me to rep his […]

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Determining Commissions for Independent Sales Reps

The most common questions involved with hiring of independent reps relates to their compensation. Here are key elements to determining commissions for independent sales reps. There is no standard flat rate or easy answer. Fortunately, there is a very important guideline to keep in mind: Nothing motivates sales better than an attractive commission schedule. “How […]

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