As a manufacturer, one of the best things about using manufacturers' reps is that you only pay for success. They generally preach this as a key benefit, but there is a scenario where it is not entirely true. The exception occurs when you have an arrangement to pay a Shared Territory Development or Pioneering fee to the rep. This is a good thing to do, and it will result in success if you create clear expectations and a mutually agreed upon plan for the pioneering territory. To start, manufacturers need to carefully review all potential reps in a territory. If everyone does their job effectively, sales from the newly acquired customers will result in commissions that offset the need for the fee.
Shared Territory Development Costs Bryan C Shirley Agency Sales; Dec 2008; 38, 12; Docstoc pg. 3 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
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