An independent manufacturers' rep does not get hired. A rep gets a territory. That is the whole difference between this path and a job search, and it is why the way to become a manufacturers rep is to find manufacturers who are missing coverage and offer to fill the gap on commission.
This article is for people who want to start an independent rep business, working on commission for one or more manufacturers in a region, not for people applying for an employee sales job. It compares the three ways to sell for a manufacturer, shows the arithmetic of what a rep carries, walks through finding manufacturers with empty territories and gives the email, the terms and the first 90 days.
Rep, employee or distributor
The three options sound similar and differ in who pays you, who owns the customer and who takes the risk.
| Independent rep | Employee | Distributor | |
|---|---|---|---|
| Paid by | Commission from each manufacturer | Salary plus bonus or commission | Margin between buy and resale price |
| Lines carried | Several, non-competing | One company | Many, from many makers |
| Inventory risk | None. The rep never owns the goods | None | Yes. It buys and stocks |
| Benefits and expenses | Your own, including travel and taxes | Employer's | The business's |
| Start-up cost | Low, but 6 to 9 months of living costs | None | High (stock, space, credit) |
Reps appeal to small manufacturers that cannot afford a full-time salesperson in every region. The manufacturer pays only when product ships, and the rep brings relationships and covers the ground. The Manufacturers' Agents National Association (MANA) publishes guides for people starting a rep firm and is worth reading before you sign anything.
What a rep earns and what a rep carries
Commission rates vary widely by industry and product, so ask working reps in your field what is normal before you quote one. For the arithmetic, take Ines Brandt, who spent seven years selling for a restaurant equipment dealer in Kansas City and is starting a rep agency for commercial foodservice equipment. Suppose she earns 6 percent on net invoiced sales. To reach $60,000 in commissions she needs $1,000,000 of sales across her lines. At 8 percent, $750,000.
Now subtract what she carries. Say $1,100 a month in travel and samples, which is $13,200 a year, plus health insurance, a phone, software and her own self-employment taxes, perhaps $5,000 more. So $60,000 gross becomes roughly $42,000 before taxes. Commissions also arrive late: many manufacturers pay 30 to 60 days after the customer pays, and a new line takes months to produce its first order. That is why runway matters more than rate. These are illustrations, not forecasts.
Choosing an industry you can already talk about
Pick an industry where you know the buyers, the vocabulary and the cycle. Foodservice equipment, building products, industrial supplies, electrical components, packaging and safety products all use reps. Check that manufacturers in your chosen field actually use independent reps, which you can see on their websites: look for a "find a rep" page or a list of sales agencies. Avoid industries where one customer controls all buying, because that leaves you with one account's whims.
Finding manufacturers without coverage
You are looking for the gap. Three places show it.
- The "find a rep" or "where to buy" pages on manufacturer sites. Map your region. A state or county with no rep listed, or a rep whose listing is out of date, is a lead.
- Job postings. A "regional sales manager" or "territory manager" posting open for months in your region means the company wants coverage and has not found it. Your offer is cheaper and faster than a hire.
- Directories and trade show exhibitor lists. ThomasNet lists North American manufacturers by product category, and last year's exhibitor list for the main trade show in your industry names the companies and often the VP of sales.
Make a list of 30 small to mid-size manufacturers (10 to 200 employees) with no coverage near you. For each, note the VP of sales or owner, the product, and the evidence of the gap. Rocketship's lead search can look up people by title (VP of sales, owner) and company size and preview 25 names before spending a credit; see the best way to find B2B leads for a small company for the options side by side, and how to build a lead list for the method.
The email: offer a 90-day trial territory
Subject: Sales coverage for Prairie Steel in Missouri and Kansas
Hi Hal, I noticed Prairie Steel's rep locator shows no one for Missouri or Kansas, and the territory manager role has been posted since June. I sold commercial kitchen equipment in Kansas City for seven years and know the dealers and operators there. I'd like to cover the territory for 90 days on commission only, with a call list of named accounts and a weekly report. If it works, we put a rep agreement in place; if not, you owe nothing beyond commission on what shipped. Can we talk for 15 minutes this week?
Ines Brandt, Brandt Sales Agency, 900 Grand Boulevard, Kansas City. Reply "no thanks" and I won't write again.
Include your address and an opt-out as US commercial email rules require. Also see how to find decision makers at a company for finding the right VP, and how to get meetings with decision makers for what to do after the first reply.
Terms to settle before the first order
Put these in writing in a rep agreement, and have a lawyer who knows sales-representative law read it, because many states have statutes about unpaid commissions.
- Territory: defined by state, county or named accounts, not "the Midwest."
- Exclusive or non-exclusive. Exclusive means no one else sells this line there.
- Commission rate, and on what: net invoiced sales or gross, shipped or ordered.
- When it is paid: monthly, and whether you are paid when the customer pays or when the order ships.
- House accounts: customers the manufacturer keeps and does not owe you commission on. Get the list now.
- Termination: notice period, and commissions on orders placed before the end.
- Samples and expenses: who pays for them.
Anything you do not write down becomes the argument in month eight.
The first 90 days
Days 1 to 30: learn the line, get samples, price sheets and a customer list, and ask for introductions to the manufacturer's two or three biggest existing accounts in your area. Days 31 to 60: call on 40 accounts, whether visits or calls, and record who you saw and what they said. Days 61 to 90: follow up on every quote, ask for the first small orders and send the manufacturer a one-page report with accounts, quotes and next steps. If you can show 15 active quotes at day 90, the conversation about a full agreement becomes easy.
If you also sell restaurant supplies or food equipment, how to sell to restaurants covers who answers at the back door and when. And for the owner's view, founder-led sales for small business owners explains what the manufacturer is trying to get away from.
Is it for you
It suits people who like calling on customers, can live on thin income for the first half year and enjoy managing relationships with several manufacturers. It does not suit someone who needs a steady paycheck from day one. Try the 90-day trial with one small manufacturer before you give up a job.
Finding 30 manufacturers and following up on each while you are on the road is the part that slips. Rocketship finds the buyers, emails them from your own Gmail, follows up, and books the meeting on its own. Plans that get you customers start at $24.99 a month (Launch), and every monthly plan starts with a 7-day free trial, card required. The AI workers do the sending and the follow-up while you are in the field.