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How to Work with a Manufacturers' Rep

Are you a small business owner trying to figure out what type of sales staff to hire? A manufacturers' representative could be the perfect solution for you.

Manufacturers' representatives (or reps) are independent salespeople who work for a variety of client companies and typically sell business-to-business. Reps generally focus on a particular industry,

such as automotive parts or medical equipment; within that industry, they represent complementary (noncompeting) products sold by different companies.

Are Reps Right for You?

Manufacturers' reps can be a smart option for a small business for several reasons. First, since they're paid solely on commission, they are more affordable than an in-house sales staff. Because they work from their own locations and don't require office space in your business, they're ideal if your company is virtual or home-based.

If you're a startup or young company, or are introducing a new product, reps can help your company gain a foothold. Because they have vast networks of contacts and knowledge of your industry, they can serve as a conduit to new opportunities.

At the same time, keep in mind that reps want to represent products that sell well. If your company or product is relatively unknown, you'll need to spend some time building your sales to a respectable level before you approach a rep. Start small and focus on increasing sales in your local area until you can

What to Look for in a Manufacturers' Rep

In addition to specializing in particular industries, manufacturers' reps generally focus on one region of the country or (if they sell globally) on particular countries. You may also find reps who specialize in selling to mass-market retailers and others who specialize in selling to independent stores or smaller chains. Before seeking a rep, decide where and how you want to sell or expand, and look for reps who can help you achieve that goal.

Where do you find potential manufacturers' reps? There are several places to start:
 Get referrals from colleagues
Ask buyers for recommendations
Attend trade shows
Advertise in industry magazines or websites
Contact a manufacturers' rep association (The Manufacturers' Agents National Association website is a good place so start; there are also industry-specific rep associations.)

When you find a rep you like, make sure he or she is not carrying too many product lines -- you want a rep with enough time to focus on your product. Also make sure the rep isn't selling products that are competitive with yours. It's crucial for the rep you choose to be trustworthy and reliable, so contact references and use the Internet to research the person's background and reputation.

What to Look for in a Manufacturers' Rep

In addition to specializing in particular industries, manufacturers' reps generally focus on one region of the country or (if they sell globally) on particular countries. You may also find reps who specialize in selling to mass-market retailers and others who specialize in selling to independent stores or smaller chains. Before seeking a rep, decide where and how you want to sell or expand, and look for reps who can help you achieve that goal.

Where do you find potential manufacturers' reps? There are several places to start:
 Get referrals from colleagues
Ask buyers for recommendations
Attend trade shows
Advertise in industry magazines or websites
Contact a manufacturers' rep association (The Manufacturers' Agents National Association website is a good place so start; there are also industry-specific rep associations.)

When you find a rep you like, make sure he or she is not carrying too many product lines -- you want a rep with enough time to focus on your product. Also make sure the rep isn't selling products that are competitive with yours. It's crucial for the rep you choose to be trustworthy and reliable, so contact references and use the Internet to research the person's background and reputation.

(Read Hiring the Right Salespeople for more on what qualities to look for in a rep.)

Since manufacturers' reps are independent contractors, you can't directly

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