Hire Your First Sales Rep

Lesson 6/9 - Your Sales Rep Contract


Hire Your First Sales Rep


Lesson Info

Your Sales Rep Contract

I really wanted to start off the segment by talking about contracts and and tell you that you need a contract if you're planning to work with sales reps, this is a business transaction, and so, you know, it's going to list expectations and requirements and it's really there for your protection, but as well as the sales reps protection, it just puts everybody on the same page from the get go and let's, you know what everyone can expect from each other. So if your sales rabbit and this again comes into play, once you've already gone through the researching process, you've gone through the vetting process of, you know, asking a lot of your questions and you interrupt have decided yes, this is something you've dated, and now you decided to get married, eh? So, you know, you've decided now that you want to work together, and so this is where the contract comes into play. If your sales rep does not provide you with a contract, I would like you to draft one, and I would like you to work with ...

an attorney on drafting one because they will be able to make sure that all your teaser crossed and your eyes are dotted. So again, they just set things up for clear expectations for everyone. So what are some things you need to include in your contract for a sales rep? These air some places to start to see the territory as we discussed a territory could be ah small portion of the state or it could be several states or it could be, you know ah country for I mean in some cases but do you really want to hone in and define what that territory is start date when are they going to start this relation? When are you starting this relationship as and what do you are you are you going to be working together commission rates and payment terms so again the commission rate there are some industry standards around this stuff, but there are things you can negotiate as well. So once you've agreed upon the terms for these payments, you want to make sure that that's included in your contract any additional fees we talked about trade show opportunities or any other fees that would be associate id on mostly the even paying the rep directly you wouldn't want to put in here, you know, catalogs that you're supplying them or anything like that, but if there's anything else that's just something you'd want to include here general expectations you know, like anything he just want to lay out the rules of what everyone's agreeing tio and then what this last portions really what's important and it's come up already through the q and a but you know one notice must be given to end the relationship you know thirty days is pretty typical that gives everyone time to wrap things up it gives the rap time tio send any outstanding orders that air coming through and it gives you time tio fill those orders get payment for them pay the commission whatever it might be so these are just the basics there may be other special circumstances that you would like to include based upon the type of business you're offering if you have high value items if you're in a luxury market and you do offer samples you know you may want to talk about how those samples will be returned to you at the end of the relationship or whether or not you will be sampling them so again some of these terms of the contract will very based upon your industry the types of products you're selling and and yeah s o on the next section is going to be when and how reps are paid I know care had a question about that earlier but does anyone have any questions about contracts before we move on tio the payment yes betsy grabbing like you talked about it a little bit before about ending a relationship and the ex this sort of seems like the standard is that you the designer gets thie retailers in that area once it's your job to follow up with the retailers versus the sales rep once you concluded your right so do you need to write it down like I you know the designer will take over those clients or with a rep ever say oh, you know I own those clients I got those clients so you can't sell there or is there ever any of that kind of not typically but if before I can answer that question I'd like to just preface is because the end keeps coming up quite a bit and e started way you need to be prepared for the end but I also want a purpose is by saying is when you enter into a relationship with the rap you're really looking for a long term partner in your business and so you want somebody that's going to stick around for the long haul that's going toe you know a sales rep is going to sell more than you can do the email and virtually reaching out to the stores directly so by you know again finding these drugs takes a lot of work and bringing them on board takes a lot of work so you do want to anticipate a long relationship here but in terms of how the stores will like the relationships and all that flush out at the end of relationship most of time you would then just take ownership of but it is not to be, like, explicit in the contract, say, you know, you want to make sure who owns it, who has the copyright to, as you know, there's, not copyright, right, right. But, yeah, union, you have to really write it out. It doesn't sound like it has like that. I wouldn't. I would just I mean, if if there are certain parameters, you want to ensure that you feel, come, you know, if you've had about situation or something that you've experienced, that you really want to make sure they're writing for your next relationship with the sales rep for who, whomever you know, include that. But, in my opinion, the typical processes, once the sales rep stops working for you that then it's your responsibility to nurture those relationships with this it's pretty industry standard that, yes, good.

Class Description

Bringing sales representatives on board can be an extremely effective way to grow a wholesale business, but the process of adding reps -- from recruiting to managing to creating a commission structure -- can be overwhelming, and even a little scary.

In this class, you’ll learn how to manage both road and showroom reps so you can spend less time on selling and more time on managing your business and designing new work. You’ll learn:

  • How to start, maintain, and end working relationships with reps 
  • What reps look for when scouting lines and ways to pitch effectively 
  • How much reps cost and when they’re paid 
  • How to frame contracts, structure agreements, and keep good records 
  • Ways to communicate clearly and effectively with your reps 
This class will give you a clear view of what a wholesale business looks like with sales representatives in the picture, and the tools you need to bring reps aboard and ensure a positive working relationship. 


Heather Bublick

Katie is so knowledgeable​!!! Everything in the class is so helpful and the workbook is amazing! This is beyond worth the price!

Tracy Clarke

Going into this class I knew nothing about sales reps. I now know that my business isn't ready for a sales rep. However, that is so useful in itself. Plus, now I know just when I'll be ready to expand and hire a rep. And when that time comes, I know about how the relationship will work. So great to learn all these things ahead of time.

Katy Casey

Loved the class and the interview with a sales rep. I'm not even at the point where I would consider hiring one yet, but it was still so valuable to hear the insights and start planning for the future.