There are two main sales agent types:
Sales Agent Type 1: Selling agents
Sales agents who actually deliver an order to you for fulfillment. This level of closure demands a higher (normal) level of commission.
Sales Agent Type 2: Introducer agents
The other sales agent type is the ‘introducer’ agent. At their most basic, introducer agents will merely identify a potential requirement, and then notify you. You then need to motivate your in-house sales resource to make introductions and go through the entire sales process all the way to closure. At the more typical level, the introducer agent will identify the opportunity, explain the product and its broad features and benefits to the customer, gain an indication of definite interest, and then effect a personalised introduction between the customer and your in-house sales resource. In either guise this sales agent type, with a lower level of selling involvement, normally commands a lesser commission.
In some situations, you can consider offering 2 separate opportunities to agents: to become either a ‘selling’ agent or an ‘introducer’ agent. (This would usually necessitate two different commission rates.)
Under what circumstances to consider offering an introducer opportunity?:
- Long sales gestation periods
- Poor fit with other elements of portfolio
- Technical and/or complex products / services
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