Rarely. This partly depends on whether a company wants to minimize fixed costs or variable costs, but most brands just want to maintain flexibility. An internal salesperson will receive a salary, benefits, and commissions, while a manufacturers’ rep is primarily paid on commissions. Most small to medium-sized brands want to focus fixed-cost investments on product innovation, and manufacturers’ reps are a variable cost as they are only paid if they successfully sell products. Internal sales employees are typically paid a salary and benefits even if the product doesn’t sell, which can be a heavy fixed-cost burden for small- to medium-sized companies. Even large companies utilize manufacturers’ reps because it is often the most efficient way to test out new territories and accounts with maximum flexibility.
- What is a manufacturers’ rep?
- Isn’t it more cost-effective to hire a full-time sales manager rather than outsource to a rep?
- What advantages do manufacturers’ reps have versus internal sales reps?
- Do reps pay to be listed on Abound?
- How do you make sure only high-quality reps are listed on Abound?
- Can I pitch my brand to Reps?
- Best practices when sending outreach messages to reps