An independent sales rep is someone who wholesales several lines of goods to retail stores.  This particular person is self employed, they work solely for themselves.  Typically, they represent several different manufacturers.  They may be representing competing lines.  For example, yours may be one of several beaded jewelry lines they represent. 

The fact that they are self employed is key to understanding your relationship to them.  They will NOT take direction from you.  You will have no control as to how they represent your line, what they say about it, or even if they  market it. On the other hand, they will be paid solely on commissions and will receive no benefits from you. They will also allow you to reach geographic markets you could not reach without an extensive sales force.

Before you start looking for independent sales reps, you should determine the conditions you want.

What percentage do you want to pay in commissions? Industry standard is 15%, but sometimes the commission declines after sales hit a predetermined threshold.  Commissions are typically paid on the wholesale price of goods.  They are paid the month after you receive payment for the goods.  Some sales reps have spun the traditional commission into a combination retainer/commission fee structure.  In return for an upfront fee, you will pay a smaller commission on sales.

Will the sales rep have an exclusive territory?  If so, they will be the only person allowed to represent your line in their geographic region.

Do you mind if the sales rep carries competing lines?

Do you care how the sales rep markets the goods?  Some reps simply have a showroom.  They expect customers to come and look through the goods to make their selections.  If a sales rep operates this way, you may want to find out where your goods will be displayed - in an open showcase or tacked onto a sample card and shoved in a box on a floor with a zillion other sample cards.  Other reps will attend trade shows or travel their route displaying their goods.

Are you willing to send the rep samples?   If so, will you charge for the samples? Will any charges be wholesale or retail?  Typically, any charges for samples are negligible. 

Once you are confident you have your general parameters, you can start your search for your reps.  Sales reps can be found in several places, e.g. they frequent wholesale shows and approach vendors and they surf the net sending emails.  One woman found a lot of sales reps by advertising for them on her website.  However, you do not have to passively wait for them to approach you.  There are several websites that provide forums for sales reps and manufacturers to meet.  Repsource is one.

Once you have found some reps, you'll probably want to talk to them.  Make sure you're comfortable with their presentation skills and sales approaches.  They're going to be presenting your product to their clients in the same manner they present themselves to you.  Most manufacturers who sell to reps are willing to give many different reps a chance. 

The last thing you'll do is sign a contract with a sales rep.  This contract will formalize the agreed upon terms.   Of course, once the ink is dry, the fun begins.  Hopefully, it will be the beginning of a long term, mutually beneficial relationship for both of you.

Watch their initial sales of your products closely.  First of all, you want the sales<vbg>.  Secondly, reps are going to be more likely to push the products that sell easily.  If you don't get any sales from a rep within a month or two, you're probably not going to get any.  It may be best to terminate the relationship, get your samples back and move on.

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