To distribute a product, you first have to make sales. Many small entrepreneurial companies are unable to field a large sales force, so they enhance their efforts by using independent sales representatives who will sell their products, along with those of other businesses, for a contracted commission. If you consider contracting with an independent sales rep, this checklist will help you evaluate each rep you are considering.
? Does the rep carry conflicting or competing lines?
? What the rep’s commission structure?
? Where is the showroom, if any? How about the warehouse?
? What is the geographical area covered?
? Who is the rep’s key account?
? What is the number of salespeople?
? How many years has the rep been in business?
? What type of promotional support is offered?
? How willing is the rep to submit sales-call reports?
? How frequent are the rep’s trade-show appearances?
? What is the rep’s specialty?
? Has the rep listed all markets covered?
? Can the rep personally interview field sales reps?
? Does the rep really know the customer?
? Can the rep provide a termination agreement?
? When are commissions paid?
? When are overdue accounts collected?
? What deductions does the rep make for credit losses?
? What rights does the rep have as far as credit rejection is concerned?
? What catalogs or other materials are required?
? Can you appear at sales meetings, to see how things go?
? Will reps buy samples at deep discounts?
? Does the rep warehouse any inventory?
? Can the rep supply a current list of references?