Independent Sales Reps Vs Internal Sales Reps – Which One Is Good For Your Business
If you’ve just set up a new business or you just want to expand your sales team you’re probably wondering which is the best option for you, that’s choosing between independent sales reps or internal sales reps. All of them come with their advantages and disadvantages, and depending on the level of your business care need to be taken when choosing between the two options. In this article we’ll share the advantages of each and then show you how to choose the right option for your business.
Who’s Independent Sales Rep?
Independent sales rep is hiring independent salesperson that will promote or sell your products and services. Most of the time independent sales reps are paid based on results not by the hour, they’ve their own tools and everything they need to promote your products and services, independent sales reps have a lot of experience when it comes to selling since they already run their firm that has worked with a lot of companies.
Who’s Internal Sales Rep?
Internal sales rep is hired as an employee for your company and is paid on a salary basis, you need to provide them with all the tools they need before they promote your products and services. Most times you’ll need to train them on your marketing strategies in order for them to produce good results; you’ll have to pay your internal sales reps even if they haven’t achieved the target set for them, you should make sure your business is in good standing before hiring internal sales reps and you must have some experience when it comes to the hiring process because you want to make sure your ideal candidate is capable of doing the job effectively.
So that’s what basically internal and independent sales reps are, let’s take a look at the advantages and disadvantages of both so that you can sort out the one that’s best for your business.
Advantages Of Independent Sales Rep
Low risk
Most independent sales reps or sales agents work on a commission basis, that’s to say as a business owner you’ll only pay when your product is sold. You can see that there is almost zero risk here since you’re paying for results.
They can establish contact fast
If you don’t have enough contacts in a territory, independent sales reps will help you reach more contact fast, this is because it’s their territory and have been around for years and have lots of contacts in their customer base and that means easy connections for you.
They can build your brand fast
If you want to build your brand fast you should definitely consider working with independent sales reps, they can reach out more audience than internal sales reps.
Disadvantages Of Independent Sales Rep
Independent sales reps charge a lot
Since you’re paying only for results, you’ll as have to pay higher commissions.
They sell many lines of products
Yes, your product might not get the attention you want especially if it’s not well known.
Training can be costly
If selling your product requires technical knowledge you’ll have to invest a lot in training your sales agents.
Independent sales reps aren’t reliable
This is another huge downside because they can decide not to promote your product at any given time; it’s already a commission basis.
Advantages Of Internal Sales Reps
You have more control
Internal sales reps are hired as your employees and sometimes there is a contract for working duration.
They’re focused only on your product
Internal sales reps won’t be distracted by another product, they’ll understand your product much better.
Disadvantages of internal sales reps
More risk
Whether you’ve sold enough products or not, you’ll have to pay them salary.
Waste of resources
You might end up wasting your time and resources on the wrong candidate, sometimes after spend a lot of time and then to realize they’re not fit to work for your company.
Independent Sales Reps Vs Internal Sales Reps, Which One Is The Best?
As a new business owner you want to minimize your risks and if you’re looking for less risk you should consider working with independent sales reps. But you have to be careful as to ensure the sales agent you want to work with have enough experience to promote your product. After your company has started generating enough revenue you can then hire internal sales reps to help you continue building up your brand.
