Compensation for Independent Manufacturer Reps, Commission only agents
by Reps4Hire on 11-23-2010 in Suppliers, Vendors, Manufacturers
Compensation for Independent Manufacturer Reps - Commission only agents
Probably the most common questions associated with first considering commission only Independent Manufacturer sales reps pertains to compensation. “How will we pay our independent manufacturer’s reps?” “Are we offering an aggressive payment method for independent reps?” "What is the average commission compensation for Independent reps?"
Response: There's no industry standard commission rate, specific commission percentage or easy answer for compensating your team of independent manufacturer sales reps.
Common Misunderstanding: “The independent reps are just adding another line. It doesn't cost them anything to add our line and introduce our products.”
Reality:
- Nothing inspires sales much better than a beautiful commission schedule.
- Offer a great product and pay the independent reps a commission that will encourage them to introduce your product over another manufacturers' product.
- Remember, independent reps only have a few minutes with a potential buyer. The product that will capture their customers' attention and compensate the independent rep must be the independent reps focus.
- The independent sales rep must close a sale to receive compensation.
- The manufacturer or service provider aligning with an independent sales rep is not paying a salary or base bonus of any sort upfront fee to the independent rep so be sure to compensate the independent sales rep creatively to encourage their attention on introducing your products.
