Commission only reps or in-house salespeople - which are the best to hire?

INDEPENDENT SALES REPS OR IN-HOUSE SALES EMPLOYEES – which are most effective??

Deciding between hiring independent sales representatives and in-house sales people can be a difficult decision to make. On one hand, bringing on
independent reps is a free way to get the sales cycle started. You
have no financial commitments, no salaries, no benefits or worries
that can come with hiring employees. You get sales people who seem
eager and motivated and will work on a commission only basis and for
most start up companies and inventors this seems like a dream
scenario. On the surface, this is a great way to go... BUT you must
understand that hiring sales reps can potentially be very hazardous
to your business at this critical stage of your growth. Here is why:
sales reps are “independent” for a reason. - they are not your
employees and don't want to be. Many reps have worked for companies
for many years and now want the freedom and flexibility to do as they
please, such as work from home. With that, they often have no
intention of reporting in to you on a regular basis or even simply
returning your phone calls or emails when you want them to. The
worst part is that because they are not employees, they are not
required to do so and that can be extremely frustrating and
potentially harmful to your progress, ESPECIALLY in the beginning!
You want someone who will care about your business as much as you do,
but most reps have their own interest at heart.

Sales reps have limited time to work with you. Many reps represent numerous companies. I have met reps that told me they rep as many as a dozen
lines! How can you expect a rep to give you more than a handful of
hours a week when they are “working” for so many other companies?
You can't – they just don't have the time. Another important
factor to consider is that most reps will spend the most time on the
lines that currently produce the most income. If your company in new
and virtually unknown, it is highly unlikely that they will spend
their precious time “pioneering” for you when they can earn
immediate income with lines that are established and produce sales.
I don't blame them actually. Reps have families and financial
obligations just like the rest of us so they do what they need to in
order to pay the bills. In essence, your products will be shown to
customers when they have extra time and that should never be good
enough for you!

How do you find the good reps?

It's very difficult! The good productive rainmakers usually work with big brands that we all know. The others are very picky about who they will represent.
They will ask much of you – do you have current accounts that
produce revenue that they can now manage so they can earn business is
ready to do business. You must have a great website, enticing
brochures, great spec sheets, alluring packaging, and other basics
your need to succeed. If you are not ready to play with the big
boys, the good reps will take a pass on your and move on to greener
pastures.

Should you hire a sales person in house?

I know, money is tight. You barely make enough to pay your mortgage never mind a high priced sales pro. But here lies the dilemma - do you invest in a
dedicated proven sales pro who will devote himself to you? How do
you know they will perform and at least cover their cost of having
them on staff? Perhaps you tried this in the past and have gotten
burned – big pay with little or no sales from them. This is always
a tough call, but, if you are truly in it for the long haul, you need
to invest in good sales people. They are the heart of your
organization. Without sales, nothing else happens. We believe one
of the best investments you can make is to bring aboard the highest
quality sales help you can afford.

An important thought – it is not wise to build your business on a foundation of independent sales reps. You need to be in control of your business
and dictate how you would like things done. It is also important to
note that there are good reps out there. A few of my close friends
are very successful and dedicated sales reps. These people work hard
and care about their work. They are true professionals. They
reality though is that the vast majority of reps we have worked with
over the years fall into the earlier. In addition, the truth is that
many people are just plain lazy and do not apply themselves in a way
that could greatly benefit themselves.

Be careful out there! Choose your help wisely. Ask lots of questions. Check references!!! AND most importantly, make sure your dreams come true
and do whatever you can to achieve them as fast and as stress- free
as possible.

www.jimdebetta.com