If you like to sell and yearn to be out on your own, the life of
a manufacturer's representative, also known as an independent
sales rep or just plain rep, may be for you. Experienced
salespeople tell us being a manufacturer's representative is
the graduate level of selling, offering potentially higher earnings
and freedom from company politics.
The typical sales agent represents eight to 10 complementary
products that don't compete with one another. Typically,
someone coming into this field is in their early forties and has
had 20-plus years of experience in an industry, according to Joe
Miller, president of the Manufacturers' Agents National Association
(MANA).
As a rule, manufacturers both inside and outside the United
States use outside sales forces instead of having in-house sales
personnel, because in this productivity-conscious era, using a rep
workforce is a more efficient and cost-effective way to sell
products. In fact, according to Miller, the practice has become so
common that corporations often call MANA complaining of a shortage
in good sales reps.
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Despite this demand, breaking into this field is not a cakewalk.
It takes one to two years to develop a stock of enough products to
represent that will make you a good living. Also, a new rep must
often take on startup companies who may or not have lasting power.
While the entry costs are not high--an equipped home office and a
good vehicle are all that's needed--you'll have to have a
way to cover your living expenses during the startup years. But
like many salespeople, the potential earnings are good: Members of
MANA average more than $150,000 a year in pre-tax income.
One change from the past is that reps today are doing more than
selling, hence the importance of having experience. Some reps train
company personnel in the use of the products they sell, offsetting
a cost their customers would otherwise carry. Some reps who sell to
wholesalers make joint sales calls with the wholesaler's
in-house sales personnel, training them to sell the rep's
products.
Most manufacturer's reps sell industrial products to
manufacturers and end users such as processing plants, HMOs and
government agencies. While there are still some sales of consumer
products, like food brokers who sell to grocery stores, for
example, for the most part, the "big box" retail stores
buy directly from manufacturers.
Finding products to represent can be done by working trade shows
for your industry where both manufacturers and customers can be
found. In addition to good old-fashioned shoe leather, reps make
wide use of the internet--to find products to represent, to
identify prospective customers and to get listed on sites like
www.replink.com, which offers online product
information on thousands of companies products that's
accessible 24/7.
If you're interested in becoming a manufacturer's rep,
start your research by contacting MANA or any of the trade
associations for individual industries, ranging from food service
to plumbing and heating. You can track down such associations by
searching the web.
Paul and Sarah Edwards are coaches and the authors of 16
books, including Best Home Businesses for the 21st Century.
You can contact them at www.workingfromhome.com.