Rep-Principals Making it Work

The rep-principal partnership Part Four

Here is the answer

Okay so here is what we do.

Atticus: “Do you know what a compromise is?”

Scout: “Bending the law?”

Atticus: “Uh no it’s an agreement reached by mutual consent. Now here’s the way it works. You concede the necessity of going to school, and we’ll keep on right on reading the same every night, just as we always have. Is that a bargain.”

That was from the great movie, “To Kill a Mockingbird.”

Now as far as the reps and the principals and what we need to do is exactly that, have a compromise. And no, it’s not bending the law. It’s finding common ground where both parties can live and thrive comfortably in a productive and satisfying relationship partnership.

Now Here are the things we can do to make that happen:

1.??????Make sure both parties want to have the relationship in the first place. I find that in recent years principals are so anxious to sign reps that they will take anyone who agrees to rep them. Reps on the other hand are so reticent to take on new lines that they succumb to agree only after a great desal of coercion by the principal. Nope. Both sides have to make sure they really do want to work with each other. This means meeting, this means making sure they have the right chemistry and making sure that they indeed have common goals so that they can actually work together. It is amazing to me how often this first step us omitted. Look both reps and principals need to make sure they are the right choice for each other or the relationship is doomed from the get go.

2.??????Create a pact of understanding. Both parties have to outline clearly want they want out of the partnership. The rep has to understand that the principal he is signing up with has the products, the services and yes the attitude that will fit her customer base. On the same token the principal has to make sure that the rep has the knowledge and the experience and the network and yes the right attitude to successfully sell?his products and services. And then the two of them have to sit down and outline (say negotiate) exactly what they want from the relationship.

3.??????Make a plan together: Both parties need to work together to lay out of common plan of action. They need to decide on the market they are going after; the technology they are going to sell. How they are going to prospect, generate leads, target accounts, and win those accounts. And yes together they need to make a common forecast of how long it will take. In short they need to set common goals along with milestone plan on who is going to do what and when and how they can expect to see results.

4.??????As part of this plan they need to set up a meeting structure. A schedule of when they will have regular meetings, agenda for those meetings and what they hope to accomplish during those meetings. This is critical. And as part of this meeting schedule they should include ride alongs where the principal will come to the reps territory and they will meet with key accounts together. These meetings should all be schedule in advance so there is absolutely now excuse for missing them.

5.??????Reps compensation. Okay now we get to some compromise. Sorry Mr. and Mrs. Principal it is just plain taking too long for reps to see any dough. That is a fact and that is the entire crux of the problem with your relationship. This has to be addressed. Here is what I recommend (or I should say we recommend because much of this concept comes from working with my associate rep relationship expert Keith Robbins) The plan is to pay as you go. Pay for accomplishment. Here is the plan:

a.??????Pay a small success fee ($100-$200) for the first quote from a new customer. Principals want new customers right? And you want the reps to bring in new customers, right? So reward them to do that. And by the way pay this immediately!

b.??????Pay a small success fee when that first order is booked. Once again something like $250 to $500 is appropriate. And pay immediately as well. The experts say that it cost and company on average $5000 to $10000 to win a new customers so paying the rep a small success fee is a bargain.

c.??????Create and incentive for special markets. For example: You get AS9100 or your 31032. Pay an incentive bonus for every customer the reps brings in from that particular market.

The important thing to remember is that the rep is being paid along the way. She does not have to wait so long to see some money. And best of all you are paying for exactly what you want. If this works the way I say it will, you’ll be smiling when you write these checks.

And finally, Ok principals put your compromise cape on. Pay the reps when you ship the product. This in and of itself will change the game enormously. Look you are going to pay them sooner or later any way so pay them early so you get all of the good will benefits that your money will buy!

Okay and before you say it, I’ll say it for you. This will create more work for your accounting department…and it will. But the extra effort will be worth it in the end. I guarantee it! Because It’s only common sense.

Bonus: To get my PPT plan on how to successfully partner with your reps just email and I’ll send you a copy [email protected]