Know-How Exchange : Strategy

Yes!! Many companies have a combination as you indicate. I'm a manufacturer rep in an unrelated industry. I only accept lines that give me an exclusive territory. And I've worked with companies that have combination employee sales, house sales, and independent reps.

The value reps bring is they have already a client base in your industry. Your website should support their sales efforts. I have sold to schools and 1 to 1 is often the only way to get their attention.

If I didn't know better, I'd suspect you were representing a client (and friend) who sells to this same market using multiple channels. It works well because the incremental cost of serving the next client is nil, so you can afford to spend almost everything on sales commissions and/or marketing.

I'd be willing to learn more and see if I can help you with this. I'm not sure I'm the right person, but it won't take long for both of us to figure that out. Contact me via the email address in my profile if you want to follow-up.

We've done this for a client and it helped that I had experience in the education market. If it's an add-on line then it will work well. If it's their only education line they'll want out quickly.

The key is to figure a way that the rep gets paid for his/her work but not for your marketing efforts. Face to face or thru a link (like the affilate marketers use) it's easy to attract. But if a rep makes a presentation and then the school buys 4 months later...is that your effort or did the rep bring name recognition.

You site can have a "how did you hear about us" button but the truth is that people will often check the first one regardless of the reason.

These aren't answers...they're just getting you into the mind of your rep so you can address them.

Michael

With respect to Michael-- I wouldn't touch a contract that didn't give me an exclusive territory. And I don't know another good rep that would. An independent rep goes out every day and puts gas in their car, pays their cell bill, parking and all other related expenses. They also do not take on competing lines. All they expect is the same loyalty in return.

Nothing happens without a reason or action. Sales don't just morph -- they happen thru effort. Every time I hear a manufacturer say "you didn't really impact the sale" -- cause they didn't think I worked hard enough, or I wasn't there when they placed the order -- I know I am going to get the shaft. All you will do is create conflict. Oh, you may win -- after all you write the cheque and are in control. But its a small world and we reps talk. Shaft one rep and they'll all bail -- or stop working the line, milk it, take on a competing line and cost you opportunties.

I hope you're getting the idea that good reps are profit centers, not commission-suckers.

If you have lousy reps, then fire them; but if you have good ones, make sure you always pay them promptly and treat them like the valued partners they are. If there's a sale in an exclusive territory, pay the commission; no questions asked. What goes around comes around.

I never understood why otherwise smart business people would badmouth their reps or talk about them as though they didn't earn their commissions.

Back to your question of reps.

I often recommend that people use reps in specific territories and try something else in others. The issue becomes one of strategic longivity. Most reps will not invest much in lines they feel they may loose in the not to distant future.