Manufacturer's Representative

By Entrepreneur Staff

Pencil

Manufacturer's Representative Definition:

An independent sales agent who works on commission

Manufacturer's representative or rep, manufacturer's broker and manufacturer's agent are all terms used to describe independent sales agents who work on commission. You don't pay them a salary, just a percentage of what they sell. Manufacturer's reps offer a practical, cost-effective alternative to a direct sales force for many growing companies. There are more than half a million reps in North America, most selling to targeted markets in select geographic regions. Reps know their markets well because they call on local buyers regularly and have established sound working relationships with them.

Using manufacturer's reps can provide you with many of the benefits of having a satellite office in the location--including knowledge of local markets and rapid access to large accounts--without your incurring large fixed costs. With reps, sales costs are always a fixed percentage of sales. The downside is that reps typically handle many different products. Some may be complementary to yours; others may compete. A typical manufacturer's rep earns a 5-percent commission on sales, although that amount varies widely depending on the product, market and sales volume.

If you're interested in learning more about manufacturer's reps, contact the Manufacturers' Agents National Association.

More from Sales

Customer Relationships

The ways in which your company communicates and deals with existing customers

See full definition

Customer Service

The degree of assistance and courtesy granted those who patronize a business

See full definition

Prospecting

The search for potential customers or buyers

See full definition

Manufacturer's Representative

An independent sales agent who works on commission

See full definition

Latest Articles

Business Solutions

Increase Productivity with This Microsoft 365 Subscription, Now $25 Off

It can make the entrepreneur life a lot easier.

Business News

Apple Pay Later Is Ending. Here's What's Taking Its Place.

The program was available for less than a year.

Leadership

This Artist Answered a Businessman's 'Powerful' Question — Then His Work Became 'the Poster Child for Juneteenth': 'Your Network Really Becomes Your Net Worth'

Reginald Adams was the executive director of a Houston-based art museum for more than a decade before he decided to launch his own public art and design firm.