How to Evaluate a Prospective Independent Sales Agent

Are you looking for someone to sell your product in Atlantic Canada but you’re based in British Columbia? Are you a manufacturer or small business that’s just starting out and cannot afford a full-time salesperson. If you answered “yes” to any one of these questions, you may want to consider using an independent sales agent.

Just like hiring a full-time sales professional, you need to advertise, screen and interview sales agents. The following is a list of questions you can ask an independent sales agent in an interview:

Representitive Company Information

• History/Background
  1. How long have you been in business?
  2. Are you incorporated, a partnership or a sole proprietorship?
• Business Plan and Expansion
  1. Can you outline your growth history for me?
  2. Do you develop an annual sales plan and budget? If yes, what are your plans for [current year]?
  3. What are your goals for the next year, five years, ten years?
• Territory Covered and Markets Served
  1. Can you outline the geographical territory or market segment you cover?
  2. Can you supply me with a map of your territory?
  3. Will you be willing to sell outside your territory? If yes, how far outside?
  4. What do you consider to be your primary and secondary markets?
• Office Facilities
  1. Where is your office based? Do you have other office locations?
  2. Do you have a toll-free number, email, website or fax?
• Warehousing
  1. Do you maintain a warehouse? If yes, how big is it?
  2. How many lines do you presently warehouse?
  3. Do you presently stock items in a line for resale?
• Personnel
  1. What is your total number of employees?
  2. How many outside agents? How many inside? How many warehouse personnel?
  3. Can you supply me with profiles of your salespeople?
• Management
  1. Who is actively engaged in the management of your company?
  2. Can you provide resumes/profiles on their backgrounds?
  3. How active is management in the sales process?
• Current Lines Represented
  1. Can you give me a list of the manufacturers/companies you represent?
  2. Can you tell me why you feel their lines are compatible with ours?
  3. Do any of our product lines conflict with your current lines?
• Account Coverage
  1. Who are your major accounts?
  2. How do cover these key accounts?
  3. What types of customers do you concentrate on?
  4. How are your salespeople assigned…by account, geographical area or lines?

Marketing Services

• Sales Forecasting
  1. Do you create sales forecasts? If yes, how often?
  2. Have you segmented/classified your territory by accounts?
  3. Are they initiated by yourself or the manufacturers?
• Market Surveys
  1. Do you have a marketing plan prepared?
  2. Do you produce market surveys for the companies you represent?
  3. What is a fair level of compensation for conducting these surveys?
• Sales Performance
  1. How do you monitor sales performance?
  2. Will you advise companies of performance if requested?
  3. Do you keep your companies/manufacturers posted on sales activity?

Sales Promotion

• Direct Mail
  1. Do you conduct direct mail programs on behalf of your companies? If yes how many people are on your mailing list?
  2. Do you purchase outside mailing lists?
  3. Do you have your own company mailer?
  4. Are there any conditions/circumstances under which you would expect your principals to participate in the production/distribution costs of these mailings?
• Trade Shows
  1. Do you participate in any local, regional or industry sponsored trade shows?
  2. Do you conduct any extraordinary promotions in your trading area?
  3. Do you expect the principal/manufacturer to support these with equipment, personnel, or financial support?
• Catalogues
  1. Do you distribute your own catalogue? If yes, is it available in print, online or in both versions?

Visits to the Territory

• Policy
  1. What is your policy regarding visits by principals or factory personnel?

Compensation

• For the Individual
  1. How do your principals compensate you?
  2. What is the range of commission percentages you receive?
  3. Do you participate in any incentive programs?
• Agency Salespeople
  1. How do you compensate your salespeople?
  2. Do you pay salespeople’s expenses?
  3. Do you have an insurance program for your sales employees?
  4. What other benefits does your company provide?

Legal

• Contracts
  1. Do your principals require you to sign an agency contract?
  2. Have you ever been involved in a dispute with any of your present or past principals?
  3. Have you ever signed a confidentially agreement?
  4. Do you have employment contracts with your sales employees?

Training and Development

• Principal/Manufacturer Training
  1. Will you attend/send your salespeople attend manufacturer/distributor or principal sponsored seminars?
  2. Will you attend/send your salespeople to regional training programs?
  3. What expenses do expect the principal/manufacturer/distributor to pay?
  4. Do you participate or send your salespeople to training courses that will improve your/their selling skills?
• In-house Seminars
  1. Do you conduct training seminars for your salespeople?
  2. What training or instruction have you pursued to keep abreast of new technology and sales efficiency?
• Associations
  1. Are you or your salespeople members of any industry or professional associations? If so, which ones?

The following information has been adapted from the publication “Guidelines” published by Manufacturers’ Representatives Educational Research Foundation (MRERF). Reproduced with permission from MRERF ( P.O. Box 247 Geneva, IL 60134 Tel: 630-208-1466)