I met Owen Swift at an online networking event. I didn’t know what a sales agent was or why a company would choose to use one, so I invited him to the podcast to explain it to all of us.
A sales agent is essentially the same as a manufacturer’s rep. It differs from a distributor in that he gets paid a commission on the price of a sale as opposed to marking up and reselling products or services from the manufacturer.
Owen explained to me the advantages for a company as well as himself as a salesperson as well as under what scenarios this model works best.
He points out that it’s not an either/or decision. A company might have a full time salesperson in one territory and an agent in another. It gives flexibility to companies trying to grow in different areas without taking on full time employees.
You should definitely give this one a listen.