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What They Do
Independent sales reps are not employees; they are independent contractors paid on commission to represent your brand in a certain territory. The challenge in dealing with independent reps is figuring out how to motivate and compensate them. Their job is to get out there and sell, and a good commission structure is the key ingredient to getting them excited about doing that. So how do you set up a commission structure that motivates and inspires them to effectively sell your products? Independent sales reps generally work on a commission-only structure, which means hiring them is inexpensive——until they start closing deals. You can get them out and working on your behalf with little upfront financial investment, which makes them a great choice for smaller companies who are trying to scale quickly. Independent sales reps usually have several related manufacturers that they represent, promoting their products to a network of buyers in their territory or market area. Reps are hired based on the territory they cover and who they know within the territory.
Work Environment
Upload your resume Sign in. Find jobs Company reviews Find salaries. Upload your resume. Sign in. Manufacturer’s Representative Salaries in the United States Salary estimated from employees, users, and past and present job advertisements on Indeed in the past 36 months. Last updated: January 13, Average salary. Most Reported. Share Facebook Twitter Copy link. Average additional compensation Commissions.
What is typical commission percentage for sales
Sales positions cover practically everything you can think of. For the most part, whenever a company or individual makes a product or service, nothing happens unless someone is there to sell it. For manufacturer’s, making the products that they intend to bring to market is the first step in the process. Once a product is made, it’s time to turn it over to their sales force. A manufacturer’s sales force can be a series of dealers, a direct sales arm or a team of manufacturer’s reps. While not always the case, many manufacturer’s reps are independent sales professionals who sign contracts with manufacturer’s to sell their products. These reps usually work under a agreement, meaning that they are not viewed as employees but as contractors. They are responsible for their own taxes, health benefits and any other «employee type» agreements. There is no doubt that manufacturer’s rep positions are not for the faint of heart. Those sales professionals who are uncomfortable working with no base salary, seldom choose a manufacturer rep position.
How Much Does a Sales Representative Make?
Manufacturers’ representatives are independent contractors who develop long-term relationships with their client companies or «principals» to sell the latter’s products. They do not function under the immediate supervision of the manufacturers they sell for; therefore the relationship is not like that between a boss and employee, but is a business-to-business relationship. A manufacturers’ rep firm, sometimes called a multi-line field sales company, can be run by one person or it can be a much more extensive organization with numerous sales persons covering specific territories. The typical agency is a corporation employing about six people, including those to handle office duties, that sell for an average of 10 different principals, according to the Manufacturers’ Agents National Association MANA. The MANA directory lists approximately 7, manufacturers’ rep firms and 30, agents in the United States, located in all 50 states. The firms represent every conceivable product line, from automotive to rubber products, from arts and crafts to jewelry, from electronics to energy, from food and beverage processing equipment to furniture. Virtually any product that is made and sold can be handled by rep firms.
Starting a Manufacturers’ Agency Business
The most common questions involved with hiring of independent reps relates to their compensation. Here are key elements to determining commissions for independent sales reps. There is no standard flat rate or easy answer. Fortunately, there is a very important guideline to keep in mind:. A commission-only compensation plan is the best way to pay sales reps. The best method being a straight percentage of the sales price. There are a few different ways to handle this, however, most sales reps prefer a commission based on a percentage the sales price.
Find a Job
Wholesale and manufacturing sales representatives sell goods for wholesalers or manufacturers to businesses, government agencies, and other organizations. Wholesale and manufacturing sales representatives work under pressure because their income and rwpsentative security depend on the amount of merchandise they sell. Some sales representatives travel frequently. Educational requirements vary for sales representatives and depend on the type of products sold. If the products are not scientific or technical, a high school diploma is generally sufficient for entry into the occupation. If the products are scientific or technical, sales representatives typically need at least a bachelor’s degree. Overall employment of wholesale and manufacturing sales representatives is projected to grow 2 percent from toslower than the mmakes for all occupations.
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