Seems like there’s always a catch. Sales are the lifeblood of your business; not the cream in your coffee, but the coffee itself. But hiring a staff of hard-driving, productive salespeople costs big, especially when you’re targeting far-flung locations. If you could offset that cost, you’d be able to put more of what they bring in back into the business, or right into the bank.
The answer for many firms is to use independent sales reps. These outside salespeople work as independent contractors, generally handling about five to seven similar products for different companies.
Because these sales reps aren’t on your staff, you pay them only a commission, and payroll expenses drop. And there are other advantages. Many reps are highly experienced, already have long-standing relationships with potential buyers, and can even give you feedback on everything from packaging to in-store displays. What’s more, they’re especially useful if you’re branching out into a distant territory.
When Robyn Sessler, CEO of Allykatz, in Kennebunkport, Maine, opened shop in 2003 to sell bath and beauty products for kids ages 8 to 12, she decided the best area to focus on was in the South. But that was a long way from the home office. So she hired a sales rep firm that specialized in selling to that region. “We found a way to sell to parts of the country I would never have had the time or money to travel to myself,” Sessler says. Now, most of her revenues come from rep sales.
Still, finding a...
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