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Sales Rep Evaluation Checklist

To distribute a product, you first have to make sales. Many small entrepreneurial companies are unable to field a large sales force, so they enhance their efforts by using independent sales representatives who will sell their products, along with those of other businesses, for a contracted commission. If you consider contracting with an independent sales rep, this checklist will help you evaluate each rep you are considering.

– Does the rep carry conflicting or competing lines?

– What the rep’s commission structure?

– Where is the showroom, if any? How about the warehouse?

– What is the geographical area covered?

– Who is the rep’s key account?

– What is the number of salespeople?

– How many years has the rep been in business?

– What type of promotional support is offered?

– How willing is the rep to submit sales-call reports?

– How frequent are the rep’s trade-show appearances?

– What is the rep’s specialty?

– Has the rep listed all markets covered?

– Can the rep personally interview field sales reps?

– Does the rep really know the customer?

– Can the rep provide a termination agreement?

– When are commissions paid?

– When are overdue accounts collected?

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– What deductions does the rep make for credit losses?

– What rights does the rep have as far as credit rejection is concerned?

– What catalogs or other materials are required?

– Can you appear at sales meetings, to see how things go?

– Will reps buy samples at deep discounts?

– Does the rep warehouse any inventory?

– Can the rep supply a current list of references?

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