Factsheet 6 – Agent Capacity & Portfolio

Agent Capacity and Performance: Managing Your Expectations

Agents cannot devote 100% of their time – or brain power – as they have several other principals, and the impact this has on performance both in terms of volume of orders, but also in terms of the level of complexity they can accommodate.

The typical agent may have 3 to 5 agencies.

They will therefore be part time for you (as well as all of their other principals). However this does not mean they will only achieve a fraction of the results of a full timer: they can leverage their contacts and experience spectacularly.

 

The Agent’s Portfolio

  • agents will have a variety of scenarios in terms of the amount of time spent and money earned from their various agencies, and that often the 2 are diametrically opposed.
  • they may attempt to restrict earnings from an agency to keep it away from the danger zone where they are at risk of being replaced by reps.
  • there may be a threshold below which an agency may be dropped as it represents too much time, too big a share of time available (opportunity cost), and too low earnings to justify itself (typically about £2-5k pa?)

Working with sales agents can be an ideal way to grow a business or launch a new product with minimal costs. Often sales agents are the most cost-effective, quickest and lowest risk route to market. They may also simply be the best strategy when trying to open up new markets, where pre-existing customer relationships are key.

At AgentBase we have extensive experience of sales agent planning, recruitment and management. Call our friendly staff for a chat about your situation and how we can help you to get the most of out of using sales agents.

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