Large companies tend to hire contract sales representatives over in-house staff, as they tend to be more experienced and successful in their particular line of work. Sales reps also tend to net better sales than an in-house sales force. Why? Because reps usually have gone through a long successful career that includes sales and/or management in large multinationals firms. This helps you as a growing firm or established company launching a new product or service. You should seek to hire the best and most experienced sales professionals in the business!
Another huge advantage from using experienced contract sales representatives is that you can learn from them. They know the industry, competitive landscape and provide good ideas with respect to how you may want to approach the marketplace.
- Experienced representatives also require less management time and less direction from you which will allow you to focus on in-house sales representatives or other more pressing needs of the business.
- Sales expenses rise and fall with your net sales which is a big plus for businesses that have ebbs and flows in their markets or have a need to increase their sales force with specific product launches.
- Experienced representatives are resilient, will be around and aren’t very likely to disappear after a few hard months on the road. They know how to manage a territory and their expenses to optimize the value of their time. They get the concept of “time is money”.
- With every upside there is always something owners need to adapt to. This is the basis in which some clients voice potential concerns with experienced representatives.
- Will they only promote products they feel they have a chance to sell and make money?
Are they coachable?
- Are they are set in their ways?
Even with your own sales team, you would need established representatives that have the potential to make money with the right compensation plan that is clearly and consistently laid out. The difference between a contract representative and an in-house employee is the rep approaches their job as though they are their own boss. If the rep doesn’t perform, they won’t be kept for the current contract or additional contracts in the future. Their sales ability and performance is their product; how they perform and work will be the best predictor of their success in the future.
The benefit of contract sales representatives:
- Leverage their experience
- Utilize the time you gain to manage other team members or tasks
- Achieve accelerated sales results and market penetration
- Manage your expense budget based on sales results