Manufacturer Reps Think in the Long Term
A well-planned strategy is beneficial to all parties in the long run.
In an old but pertinent article by Jerry Leth, he writes about the importance of having a solid agreement in place. This article mainly applies to manufacturer representatives, but it goes both ways.
[Some manufacturers] want a really simple agreement, a one pager. When you initiate the relationship with the other person, there may be a very high level of trust between the two of you. What happens when that other person leaves the firm and is replaced by someone with vastly different ideas and attitudes about manufacturers’ reps? What if they decide to terminate the agreement? What if in the meantime, you have built up a significant level of business for this principal? How you worded the agreement way back when will have a significant impact on your residual compensation. Will that simple one pager really adequately cover all the bases?
Solid planning in advance of any long-term relationship is necessary. Read the full article here.