Reps vs. Direct Sales
Properly handled, an outside sales representative will not only work hard to sell your services, but can provide you with important information about the market in general and your competitors in general.
Your first inclination may be to hire employees to make up your direct sales force. Initially, this may seem like the best way to go, but considering the cost of an annual average salary of $40-50,000, along with the cost of training, traveling, commissions, incentives, medical and fringe benefits, holidays and vacations, the total compensation is closer to $80-120,000 a year. And this doesn't even account for the unproductive time it takes to become familiar with the new territory.
Instead, partner with an Independent Sales Rep! Reps bring experience and desire to succeed to the table. They work on commission so they need to sell. They also have working knowledge of the territory. Quite often a rep is already calling on your potential customer because they carry a complimentary product line. It's a synergy that a sales force cannot duplicate.
*Reproduced with permission from the MANA research bulletin 4/97.