Build a Better Broker Sales Force, Naturally

So many companies rely on a team of broker representatives to grow their early-stage businesses without really taking the time to understand the unique role each broker performs. In this article, you will learn how natural channel brokers build their businesses, what unique demands and challenges they face, and how to better leverage your relationship with them to grow sales more swiftly. 

First things first - what makes a broker a broker?
A broker is someone who typically (but not always) works for more than one company on a contract basis to sell their wares. In raw materials, you may find broker representatives that call themselves "manufacturers representatives" and who work with only one company - but that's not the norm. Typically a broker is someone who works with more than one non-competing product line on a contract (commission) basis. They may be an employee of a larger broker house with 50+ product lines (brands) they represent in a multi-state territory or a single individual with a more refined territory and fewer product lines.

In each case, they build their business by actively selling products from their assortment to a specific set of customers. Their incentives are typically made up of commissions ranging from 5% - 15%, and bonus incentives on a fee schedule or as a percent of sales. As you can imagine, providing a stronger commission can get smaller (or newer) brands more focus than the brand's total business might otherwise garnish. Also, larger broker houses with MANY lines are typically willing to work with lower commissions, while independent brokers who represent fewer brands and provide more focus need greater incentives to stay in business. 

Shouldn't I just hire employee sales reps if I can? 
This question is one that depends greatly on a company's needs and its resources. I've personally been very successful growing brands utilizing a broker sales-force exclusively, but since they aren't employees there are certain things you can't ask them to do for you. Strictly speaking, a contractor is only a contractor so long as they manage their own business on their own schedule. This means you cannot tell a broker they must be at an appointment this coming Tuesday at 1pm "or else". You can invite them, suggest they be there, but you cannot demand. Typically this doesn't pose a problem because brokers understand they need to fulfill your needs to remain in good standing.

Employee sales forces are great - because they are 100% focused on your brand! But they are very expensive and you have to throw more resources at managing your employee staff. This often means hiring regional managers before your business warrants the additional headcount. This can result in creating top-heavy organizations with greater cash-flow issues.

When you do the math, hiring a great broker will almost always be more affordable and provide the resources you need to grow your business on schedule and plan - plus you're only ever paying commissions on sales (so long as you didn't get roped in to paying a retainer -- can you tell I don't like retainers?). And don't forget, brokers cover all their own expenses. This includes food, gas, insurance, cell phone bills, internet connection, benefits, taxes, etc.. Also, since they work with more than one brand, they can leverage successes with other brands to help new brands along. This is one reason I always look at a broker's brand assortment at least twice a year. I like to ensure there aren't competing lines, and that we remain in good company with exciting brands!  

What type of brokerage should I work with? 
This question will be answered differently for different types of companies. For one, you have to work with a broker that works well in your class of trade. Are you a supplement or personal care brand that sells only via direct channels (not in distribution), or a refrigerated grocery line that is sold through distribution? Do you have an active need for your broker to also train your accounts, or do you have another plan for getting company messaging in the hands of store staff?

If your line is direct (not in distribution) I would almost always suggest collaborating with independent brokers that are more closely tied to their businesses and that work with fewer lines. They can be hard to entice to join your ranks, especially if you're in pioneering phase, so you'll want to have a really strong promotional plan, and be focused on creating store-level excitement around your brand. 

If your line is in distribution, you'll typically want to work with a larger broker house... but you'll also want to ensure you're leveraging distributor representatives - as too often companies seem to forget this resource exists. This means creating a strategy to gain better attention from both the broker house and the distributor. Incentives are good, but focusing on making their jobs easier is paramount. If you give them easy solutions, a strong promotional plan, enough tradespend to excite retailers, and incentivize them too, you can still win through distribution, and stand out in the crowd of brands they represent.

How do I get the most of my broker team?
Asking what you can do to get the most out of your team is the most important first step. Ask it, and keep asking it. This question alone will lead you to success, but you can also follow several simple steps to safeguard your business and drive the behavior you want to see. 

1. Get in the field with your reps and analyze their approach in each account. Remind them to ALWAYS have a plan for EACH sales call!
2. Train, and train again, and train again. Don't forget that these are brokers. They represent more than just your line. You may be sick of saying the same thing over and over, but they probably still need to hear it. Do your best to create elevator pitches that they can become successful parroting back. Show them what you want - and paint a picture of what you want to see when you're training them.
3. Host sales meetings once a month, but keep it to one hour - and be sure to engage your audience! I do this by sharing field experiences from that month, and pre-interviewing a few reps each month for the sales call. I'll have 2 or 3 topics that I will bring up with a few reps, and I'll ask if they're okay with me calling on them during the sales meeting. This keeps them calling in, and it keeps them engaged! I also invite in experts and other company personnel to provide brief trainings from their perspective to keep the calls interesting. 
4. Celebrate success - and do it publically! I really can't say this enough - as too often sales managers tend to focus on what brokers aren't doing. Sadly, that method only serves to demotivate and create fewer successes. Celebrating successes serves to keep them inspired. Hey - if so-and-so can do it, then I can too! Use your sales meetings, e-mail, social media, or your company's intranet to get the word out!
5. Find out what incentives excite them. And you'll be surprised that it's not always money. Often it's something as simple as recognition - so remember to celebrate their successes and encourage your team to do the same.
6. Be there for your team! Remember, even though they're brokers, they are still a part of your team. Doing your best to make them feel like they are a part of your company - a part of something truly special pays off in dividends. 
7. Take tools from the toolshed of their other lines. This one really is easy. Ask them what promotional strategies are working great for other lines they represent. ALWAYS be on the hunt for ideas
8. Ask them what you can be doing better - and listen to what they have to say. Modify your approach with feedback you get consistently. Sure this may be a "one-off" but it might not be - and what they have to say can help guide you to greater successes.

And remember, you just have to listen, pay attention and reflect to create your company's personalized best broker management and sales plan.