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July 2001
A Message From The President....
Welcome to the world of the independent manufacturers’ representative! Whether you’ve been “going it solo” for a number of years in a different field or you’ve had it up to the proverbial “here” with corporate life
and you’re ready to strike out alone, the field of independent manufacturers’ representative offers you a most rewarding, challenging and potentially lucrative career path.
But you don’t have to go it alone — MANA is here for you. With 5,000 agent and 1,500 manufacturer potential mentors in residence, all the support, answers and just plain camaraderie you could wish for are at your
fingertips, 24 hours a day, thanks to the wonders of e-mail and the world wide web. This e-zine, Starting Today, is a reflection of our sincere desire to be of help to you as you start out in the agency way
of life. Best of luck to you in your new venture, and remember, we’re just a toll-free phone call or an e-mail away!
Sincerely,
Joseph W. Miller
President/CEO
Manufacturers’ Agents National Association
First, You Have to Think Like a Businessperson and Act Like an Agent
by Bert Holtje
You’re probably a pretty good salesperson. You’ll have to be. The business is competitive. But, being a good salesperson is only the first requirement. You have to be a good businessperson. This means that you not
only need to know a lot about the routine of running a small business, you also need to know more than a little about the federal and state regulations under which you will operate. We’re not only talking about the
tax codes and the laws which define the independent contractor, we’re talking about the skills needed to manage a business — even if you are the only employee.
Far too many agents tell us that they underestimated what it takes to run a sales agency. The owner of a now very successful agency put it this way: “Before I started my agency, I rose through the sales, marketing
and corporate ranks of a medium-sized manufacturing firm. I had become general manager of the firm. I had full profit-and-loss responsibility, and I was responsible for running not only the headquarters operation,
but two satellite plants. With that kind of experience, I thought that running a sales agency would be a piece of cake. Boy, was I wrong!
“The mistake I made was not realizing that in my early days as an agent I had to do everything. Yes, I hired someone to handle the day-to-day office and bookkeeping operations. But I was still the chief cook and
bottle washer. I wasn’t prepared for that. I have to say that it caused no small amount of panic, but I quickly realized that I had to get over my big company and settle down to doing what had to be done. If I had
thought about it, I would have prepared a lot more carefully for my role as entrepreneur than I did.”
So, let this be lesson one — running an agency is not like anything you have ever done before. Even if you have run another kind of small business successfully, running an agency is going to take a lot of time to get
used to. Running a sales agency, from a business perspective, is not all that different from running most other businesses. The accounting procedures are going to be pretty much standard. The state and local tax and
legal requirements are not going to be all that different from most other businesses. And where the differences do occur, dealing with them is not going to throw you for a loop. But, what is going to be a lot
different is the mind-set you need to make a go of running a successful sales agency.
Next month, read about the balancing act an agent must perform to keep himself, his principals and his customers happy.
What Is a Manufacturers’ Representative?
by Ken Benjamin
What is a manufacturers’ representative and what does a manufacturers’ representative do to make a living?
Many years ago I read an article on salesmanship and the respected author said something to the effect that among the elite of selling professionals are manufacturers’ representatives — selfemployed, independent
businessmen and women who sell goods and services of several different companies that do not compete with one another, but in many cases are sold to the same customer.
These straight commission individuals are commonly called “reps.” They work strictly on a straight commission basis, and many times are established in some type of commodity or service specialty before they
considered branching out on their own as sales reps.
A survey conducted by MANA, the Manufacturers’ Agents National Association, revealed that the owners of 1200 manufacturers’ representative sales agencies in the United States enjoyed a median gross income far in
excess of the median for sales leaders in many other industries.
I know that kind of high income potential sounds exciting, but what does it really mean to someone like you, who is just now considering sales as a career and evaluating the possibility of becoming a manufacturers’
representative?
Forgetting the monetary aspects, let’s stop for a moment and review what this kind of sales representation is, and whether it is what you think it is.
In its basic form, a manufacturers’ representative is any individual who agrees to represent a company and sell their product or services on a straight percentage fee, which is automatically added to the selling
price of their product or service. This is commonly known as straight commission selling.
You as the rep become an alternate to a salaried or direct employed salesperson and your income is based on a certain percentage of what you are successful in selling.
Next month, read about what is expected of a manufacturers’ representative.
This article is excerpted from Make Your Future Happen, Ken Benjamin’s definitive guide to starting an agency. To order your copy, call MANA toll-free at (877) 626-2776 today!
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